In the past year, the world of cryptocurrencies has experienced a tremendous upsurge, with several digital assets recording large gains. As can be seen from its daily charts, XRP, a well-known brand in the cryptocurrency world, recently tried a breakthrough. This possible innovation might be hindered, though, by several lingering problems.
The obvious lack of trading volume and liquidity with regard to XRP is the main cause for worry. Indicators of significant investor interest and active markets include a good trade volume. Any cryptocurrency’s price fluctuations need to be supported by a high trading volume in order to skyrocket. A lack of investor interest or confidence might be indicated by a low trading volume, which could cause prices to stagnate or even drop.
On the XRP daily chart, there are a few little upticks interspersed with a largely horizontal pattern. Although there is a clear attempt to ascend, there is no forward propulsion. The low trading volume, which reflects the hesitation of traders and investors to adopt a positive view on XRP, might be ascribed to this sideways pattern.
Also looming big is the fallout from the SEC’s lawsuit brought against Ripple and its CEO, Brad Garlinghouse. Even though the SEC withdrew the accusations, the episode may have irreparably damaged XRP’s reputation. Investor mood drives much of the bitcoin market, and market behaviour in the future is frequently influenced by recent market happenings. The fact that XRP failed to gain traction after this legal turmoil is evidence of the residual reservations that prospective investors still have.
Additionally, the market for cryptocurrencies in general is expanding. Significant currencies like Bitcoin, Ethereum, and others are expanding. It is puzzling that XRP can’t keep up with its rivals in such a favourable atmosphere. When an asset fails to benefit from an upbeat market climate despite overall optimism, the causes are frequently deeper than simple market dynamics.