- XRP’s trading volume on Coinbase surged by 9,640% in 24 hours, reaching $438 million, driven by market volatility and excitement over upcoming XRP depository receipts (DRs) and ETFs.
- Despite this surge, XRP’s price remains under pressure, trading at $2.42 and struggling to break past the $2.62 resistance level for a potential rebound.
The cryptocurrency market is no stranger to sudden surges and volatile swings, but the latest spike in XRP trading volume on Coinbase has caught the attention of traders and analysts alike. According to CoinGlass data, XRP trading volume skyrocketed by an astonishing 9,640% in just 24 hours, reaching a staggering $438 million. This dramatic increase reflects traders’ eagerness to capitalize on price fluctuations and market trends.
Why the Sudden Surge?
The massive trading volume signals heightened activity as traders adjust their positions in response to XRP’s price movements. Market volatility often fuels such trading spikes, with investors seeking to maximize profits amid changing conditions.
Additionally, the recent developments regarding XRP depository receipts (DRs) have fueled excitement in the market. Fox Business correspondent Eleanor Terett reported that these DRs could soon be available for purchase. Similar to American Depository Receipts (ADRs) used in traditional finance, XRP DRs would allow investors to gain exposure to XRP without the need to purchase it directly from a cryptocurrency exchange.
XRP Depository Receipts: A Game-Changer?
The introduction of XRP DRs could serve as a bridge between traditional finance (TradFi) and decentralized finance (DeFi). These receipts will be managed by Anchorage, a federally chartered bank under the supervision of the U.S. Office of the Comptroller of the Currency. By offering an alternative investment route, XRP DRs could attract institutional investors and further legitimize XRP in the mainstream financial ecosystem.
In a related development, Cboe has filed multiple 19b-4 applications to list and trade proposed XRP ETFs from major players like Bitwise, 21Shares, Canary Capital, and WisdomTree. This move signals increasing institutional interest in XRP, which could impact its long-term value.
XRP Price Struggles Despite Market Excitement
Despite the trading frenzy, XRP’s price has faced downward pressure. Currently, XRP has dropped 4.49% in the last 24 hours, trading at $2.42 after reaching a high of $2.54 in Friday’s session. The token remains below the key 50-day Simple Moving Average (SMA) of $2.62 and is down 19% for the week.
For XRP to reclaim higher levels, bullish momentum must push the price above the $2.62 resistance level. If successful, XRP could once again aim for the $3 mark. However, if downward pressure persists, the cryptocurrency may consolidate between its 50-day SMA ($2.62) and 200-day SMA ($1.32), with support possibly forming around $2.
The Road Ahead
The recent surge in trading volume, coupled with the introduction of XRP DRs and potential ETFs, highlights the growing institutional interest in XRP. However, price action remains uncertain, and traders will be watching key support and resistance levels closely.
Will XRP break past its $2.62 resistance and aim for new highs, or will it face further corrections? As the crypto landscape continues to evolve, XRP’s next move could shape its future in both the crypto and traditional finance worlds.
