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Tough Week for Ripple’s XRP: 24H Volume Decline Is Dire as Price Slumps
Ripple Lab’s XRP has been having a tumultuous week, with its price plummeting and trading volume drastically declining. As of Monday morning, XRP was the only top 10 cryptocurrency by market cap that bore losses over the past seven-day window, except for Cardano ADA.
The decline in daily trading volume on popular cryptocurrency exchanges such as Binance, Kraken, and KuCoin is particularly concerning. The 24-hour volume has dropped a staggering 93% since December 1st to just $2.5 billion, down from an astonishing $37.5 billion at the start of the month.
This drastic decline in trading activity comes on the heels of XRP’s price surge during November and December, which saw it return a whopping 247% gain for the year, significantly outperforming Bitcoin’s 126%, Solana’s 75%, and Ethereum’s 49%. The market may be expecting some mean reversion to the average trend for these digital assets.
The lack of trading volume support is particularly worrying, as XRP’s price did not have any significant correlation with its trading volume increase during November and December. Instead, it continued to climb. If this decline in trading volume persists, it could lead to further losses for the cryptocurrency.
In a bullish sign, however, analysts are noting that XRP has reached an undervalued state, which presents a potential buying opportunity for investors who have been waiting on the sidelines. Crypto analyst Zach Rector even went as far as calling XRP “incredibly undervalued” in a recent tweet.
Furthermore, technical chart analysis suggests that XRP is poised to reverse its recent decline and embark on an upward trajectory soon. Peter Brandt, a renowned chart analyst, has predicted a price target of $2.71 for the cryptocurrency if it doesn’t breach key support at $2. Meanwhile, MikyBull Crypto expects the price to reach $4 in the near future.
In conclusion, while this week has been particularly challenging for XRP holders, the cryptocurrency’s undervalued state and potential technical reversal may present a buying opportunity for investors.
Source: cryptopotato.com
