The market capitalisation of XRP, the seventh-largest cryptocurrency, has increased during the last day, as seen by its trading volumes.
2.03 billion XRP tokens, or more than $1.07 billion, have exchanged hands, according to CoinMarketCap statistics, which represents a 22.61% rise in trading volumes.
The price of XRP has somewhat recovered in tandem with the rise in trading volume. After falling for three days in a row, the price of XRP has now turned green.
As of this writing, XRP was down 3.74% for the week but up 0.34% over the previous day to $0.529.
The recent drop in price, which was followed by a rise in trading volume, suggests that traders may be taking advantage of alleged purchasing opportunities, which might account for the spike in trading volumes.
Buying at lows of $0.5117 in response to XRP’s three-day price decline could have boosted activity as traders returned to the market.
XRP price action
At $0.538 on October 22, XRP fell below the daily SMA 200, suggesting that bears are trying to take control. On Wednesday, the sell-off persisted, and buyers returned to the market after XRP hit a low of $0.5117.
Bulls may need to push and hold the price above the 50-day SMA at $0.55 to indicate strength in order to maintain the XRP price recovery. After that, XRP can try to rise to the $0.64 overhead resistance level.
However, XRP may drop to the solid support level of $0.50 if bulls are unable to continue the current recovery. The bulls must protect this crucial barrier since a breach and a close below it would let a further decline below $0.46.
The XRP Ledger presents a different picture, even though the price of XRP is still unimpressive. On-chain analytics company Santiment saw a spike in address activity and new wallet formation on XRP Ledger at the beginning of the week, which was comparable to levels last observed months before.
With 35,799 distinct wallets completing at least one transfer in a single day—the most in more than three months—the number of active wallets on the XRP Ledger skyrocketed. In a single day, 3,858 new wallets were produced, which is the most in over seven months.
