XRP continues to do that show strength despite largely underperforming during the period ongoing bull market. Interestingly, the crypto witnessed an increase in activity last week, with trading volume increasing at the same time. Trading volume in particular has increased by more than 80% recently.
However, the increase in activity and trading volume has not necessarily translated into continued price growth as XRP is currently on a 13% percent correction from Monday’s $0.74 price level.
XRP Trading Volume Surges, But Will Price Follow?
XRP witnessed a surge earlier this week, breaking out of a six-year symmetrical triangle, prompting analysts to anticipate a continued price rise.
During this period, the crypto witnessed a rise in trading volume of whales in particular, with large periods of XRP leaves crypto exchanges.
This bullish sentiment allowed XRP to cross $0.74 for the first time in eight months, albeit for a brief moment. This price increase was short-lived as XRP fell to $0.6 in the following days.
However, a recent 80% increase in on-chain activity and trading volume has resulted in the price of
Volume spikes of this magnitude often occur before a price rally. Therefore, this huge volume spike has the XRP community speculating that a strong price rally is in store.
Total crypto market cap currently at $2.5 trillion. Chart: TradingView
Current Price Action: Can XRP Hit a New All-Time High?
At the time of writing, XRP is trading at $0.6398. Crypto’s journey to a new all-time high is final will not be an easy taskas it is now down 83% from its current all-time high of $3.84.
However, current market dynamics and diverse predictions of many crypto analysts indicate that the crypto could see a big rise in the near future.
One of them is a prediction of analyst JaydeeWHO noted that XRP’s recent breakout from the aforementioned six-year trendline could lead to a surge to $3 from its current price level.
The key resistance level to watch is $0.74. XRP tested this level a few days ago but failed to close above it. If bullish momentum continues and volume remains strong, XRP could decisively break through $0.74 in the new week. If so, the next resistance levels are $0.82 and $1.5.
One of the few factors that can contribute to a sharp increase in prices is regulatory clarity on the status of XRP, which could increase the confidence of institutional investors.
Notably, XRP’s non-security status appears are gaining ground. The European Corporate Governance Institute (ECGI) recently released a research paper recognition of this non-safety status.
Featured image from Pexels, chart from TradingView
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