As XRP price and trading volume increased by 111% over the past day, trader interest is rising. Several crypto assets displayed bearish activity in the current market environment, and trade volumes dropped.
XRP PriceDraws Traders’ Interest as Volumes Jump 111%
The recent FTX collapse and hack that followed shocked the whole crypto market. Several cryptocurrencies, including XRP, fell. XRP experienced three days of declines before recovering to an intraday low of $0.358 at the time of publication. Trading for XRP is now up 2% at $0.354, with intraday highs of $0.358.
Most likely, investors looking to purchase XRP at its current lows led to an increase in XRP volume. Most likely, traders have been scrambling to seize the chance provided by the recent XRP volatility. However, some observers claim that the total number of units transferred between buyers and sellers, or trading volume, is an unreliable indicator of investor positioning. A more significant portion of trade volumes was accounted for by the popular crypto exchange Binance.
Over the past seven days, XRP has seen a drop in value, losing 25.25%. Meanwhile, it has traded between $0.3203 to $0.4668 in the past seven days. On the upside, a flip of the $0.40 barrier at the daily MA 200 to a support floor might be crucial in recovering the recent losses. In such a case, the XRP price could rise 12% to $0.447 and reach the $0.47 level. On the other hand, further declines from its current levels might see a retest of the $0.32 level ahead of the $0.314 floor.
XRP/USD 4-hour chart | Source: TradingView
Can XRP reach $0.50 by the end of 2022?
In early November, the XRP price was moving against the cryptocurrency market tide, recording gains as established assets like Bitcoin (BTC) and Ethereum (ETH) traded in the red zone. The rally was inspired by increasing confidence that the token’s parent company Ripple might win the case against the U.S. Securities and Exchange Commission (SEC).
Amid the SEC case development, Ripple temporarily breached the $0.50 level, focusing on reclaiming $1. By press time, the token was trading at $0.35, dropping by over 25% in the last seven days in line with the general cryptocurrency market downward trend. Overall, XRP remains bearish.
The $0.5 level remains a major resistance point for XRP; the asset’s potential momentum toward breaching the position depends on several factors. Notably, the last recorded rally saw XRP get rejected at $0.58 before declining.
According to the reputable crypto trading expert by the pseudonym Trading Shot, XRP’s current price presents a buying opportunity for short-term investors. The expert acknowledged that XRP’s prospects to rally had been derailed by FTX’s exchange impact on the market.
He notes that XRP can incur a selling pressure if the asset corrects below the $0.286 support, a move that will target $0.236. If the token sustains gains above the support level, XRP could target $0.4 by the end of 2022.
Furthermore, XRP’s one-day technical analysis remains bearish, with a summary pointing to selling at 15. The token’s moving averages support a ‘strong sell’ at 13, while oscillators are mainly neutral at seven.
Although the $0.50 level remains a realistic goal for XRP, the prospects of attaining the position largely depend on the general cryptocurrency market sentiment. Notably, the market has mainly traded in the red zone impacted by macroeconomic factors.
At the same time, the ability of XRP to rally or drop will depend on how the asset reacts to fallout from the FTX exchange liquidity crisis. Indeed, the saga has resulted in the market losing about $180 billion within seven days.
However, XRP’s potential to rally partly depends on the outcome of the SEC case. If the court rules against Ripple, XRP faces a threat of further correction. In this line, the token has rallied in the wake of positive development around the case.
Read more:
- XRP Fund Flows Indicate A Change In Investors’ Sentiment Around Ripple V. SEC Battle
- VC Firm Makes Compelling Argument Why XRP Is Not Security
- A Close To Billion XRP Has Been Moved By Ripple And Anonymous Whales To Exchanges