XRP volume may have been caused by investors wanting to buy XRP
According to CoinMarketCap data, XRP trading volume suddenly increased by over 1,500%. However, the XRP price did not make any major moves, leading to speculation. At the time of publication, XRP was changing hands at $0.457, up slightly over the past 24 hours.
Increased volatility generally leads to higher trading volumes in any market as seasoned traders buy and sell large quantities to capture profits. This is not the case, as XRP has been consolidating in a range since Oct. 20.
Similarly, an increase in XRP volume could be the reason why investors are looking to buy XRP at its current range in anticipation of a major change in price.
As reported by U.Today, the XRP price chart produced its first “golden cross” in 15 months on Oct. 23, which is regarded as a bull market indicator by analysts. Its last occurrence was on July 17, 2021, which was followed up by a 176% price rally later.
However, it should be noted that sometimes a crossover occurs when the asset is already overbought and causes a correction, trapping buyers on the wrong side of the market.
Likewise, the total number of units traded between buyers and sellers, or trading volume, is, however, said by some observers to be an unreliable measure of investor positioning.
More interesting is the disparity in XRP 24-hour trading volumes cited by both market data aggregators, CoinMarketCap and CoinGecko. CoinMarketCap gives the 24-hour trading volume of XRP as $19,750,281,700, while CoinGeko quotes the same as $1,528,666,065.
Whatever the case might be, optimism remains unchanged as the number of addresses with over 1 million XRP recently hit a new high.
