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Tough Week for Ripple’s XRP: 24H Volume Decline Is Dire as Price Slumps
Ripple’s XRP has had a disastrous week, with its daily trading volume plummeting by a staggering 93% in December, further exacerbated by a price slump. As of Sunday evening, the cryptocurrency’s daily trade volume fell to $2.5 billion, a far cry from the $37.5 billion seen at the start of the month.
XRP’s dramatic decline in volume has led to a corresponding drop in its value, with losses exceeding 7% over the seven-day period ending Monday morning. It is a stark contrast to the impressive performance exhibited by XRP during November and December, when it outperformed its peers, returning an astonishing 247% against Bitcoin’s 126%, Solana’s 75%, and Ethereum’s 49%.
While some may attribute this decline in volume and value to mean reversion to the average trend for these digital assets, other factors must be considered. XRP’s price surged significantly during this period without adequate support from its daily trading volume. This begs the question whether a similar phenomenon will play out if and when volume returns.
It is also worth noting that while Bitcoin and Ethereum saw declines in their respective volumes, Ripple’s decline was drastically more severe. In fact, other major cryptocurrencies like Bitcoin and Ethereum only experienced a modest decrease of around 10% in trading volume during the same period.
The question now becomes what this downturn means for XRP’s prospects moving forward. While some may view this as an opportunity to enter the market at a relatively lower value, others might see it as a sign that the cryptocurrency’s gains are unsustainable or even artificial.
One thing is certain: no one wants to see their investments take such a hit. This drop in trading volume and price is a sobering reality check for investors who have been riding the XRP wave of late.
Despite this gloomy outlook, there are still reasons to be optimistic about Ripple’s prospects going forward. Technical chart analysts like Peter Brandt and MikyBull Crypto are predicting a bullish reversal, with Fibonacci and Elliot Wave analysis suggesting a possible target price of $2.71 for XRP in the near future.
Source: cryptopotato.com
