The increase in XRP trading volume has been significant, with multiple sources reporting substantial increases over a short period. On March 19, 2024, data from CoinMarketCap revealed an increase in XRP Trading Volume by 130%, to more than US$4 billion in 24 hours.
This increase occurred amid a general market downturn, where increased XRP trading volume helped offset some losses suffered by other assets. Despite a slight drop in the price of XRP to $0.605, the asset has remained in the green over the past month, showing an increase of over 8%.
Source: CoinMarketCap
Market Developments Trigger Spike
One of the main drivers behind this increase in trading volume is a favorable court ruling between the US Securities and Exchange Commission and Ripple Labs. This decision provided much-needed regulatory clarity for XRP, prompting major exchanges like Coinbase, Kraken, Bitstamp, and Binance.US to relist or announce plans to resume trading in XRP.
The increase in trading volume also reflects an increase in investor enthusiasm for XRP. The increase in trading volume, which at one point constituted more than 22% of XRP’s market capitalization, indicates a strong wave of interest and confidence among investors. Additionally, an impressive rally in XRP prices, with the price rising nearly 100% at one point, fueled further trading activity as investors capitalized on the price movement.
XRP market cap currently at $32 billion. Chart: TradingView.com
Stock exchange listings boost commercial activity
The reopening or relisting of XRP on major exchanges following the court ruling played a key role in increasing trading volume. Exchanges such as Coinbase, Kraken, Bitstamp, and Binance.US that have reopened XRP trading have provided traders with greater opportunities, contributing to the increase in overall trading volume.
Over the past week, the price of XRP has seen notable fluctuations, reflecting a mix of ups and downs in the cryptocurrency market.
According to Coinbase, the price of XRP has seen a 3% drop in the last 24 hours and a significant 17% drop in the past week. This downward trend indicates a challenging week for XRP investors as the price struggled to maintain its position.
Varying price data from different sources
On the other hand, the YCharts data paints a slightly different picture, indicating an XRP price of $0.6539 on March 19, 2024. This number represents an increase of 5.61% from the previous day and a significant increase of 68% compared to the previous year, showing a more positive outlook for XRP in the long term.
Investors and traders are closely monitoring the development of XRP as it overcomes market uncertainty. A break below the 200-day moving average at $0.57 could be the first sign of imminent market decline.
Featured image from iStock, chart from TradingView
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