Ripple’s XRP is going down because volume is going down – Here’s what investors need to know right now
As of Thursday morning, Ripple’s native coin XRP was trading at $2.20, which is a small drop. This is a drop of 1.71 percent from the last high of $2.23. The decline may not seem like much, but the significant clue is the drop in trade volume, which has fallen by more than 16% to little over two billion dollars. For experienced investors, this drop in both price and volume at the same time could be an early sign that the trend is about to change.
XRP is still up 3.88 percent over the past week, but this unexpected drop is making people pay more attention to how investors feel. XRP is now worth a robust $129 billion on the market, making it one of the most valuable digital assets in the world. But even the most popular coins can’t avoid big changes in the economy and changes in market momentum.
There are a number of other factors that are affecting this drop in interest. Many traders are staying on the sidelines since the Federal Reserve is sending out hawkish monetary signals and risk assets are becoming more cautious. The larger crypto market, on the other hand, has witnessed uneven moves. Over the last 24 hours, PancakeSwap, Lido DAO, and TRON have all seen big gains. On the other hand, tokens like Monero and the meme-inspired dogwifhat have lost a lot of value.
People have liked XRP a lot since it settles quickly and Ripple works with big companies. But when the rules in the US change, notably the SEC’s ongoing investigation into crypto categories, investors should be careful. XRP’s lively Reddit forum and Twitter feed are still vital places to keep an eye on for real-time conversations and feelings.
The market may continue to be volatile in the immediate term as it processes these signals. Long-term holders will be keeping a close eye on important support levels to see if this drop is simply a break or the start of something bigger.
Also read: Understanding Ticks in Forex: How to Use Tick Charts for Better Trades