XRP Records Massive 80% Surge In Trading Volume Can Price Reach A New ATH?
XRP continues to show strength despite largely underperforming during the ongoing bull market. Interestingly, the crypto witnessed a surge in activity last week, with trading volume surging in tandem. Particularly, the trading volume saw an increase of over 80% recently.
However, the boost in activity and trading volume has not necessarily translated into continuous price growth, as XRP is currently on a 13% percent correction from the $0.74 price level on Monday.
XRP Trading Volume Surges, But Will Price Follow?
XRP witnessed a surge earlier in the week which saw it breaking out of a 6-year-long symmetrical triangle, prompting analysts to anticipate a continued price surge.
During this period, the crypto witnessed a surge in trading volume from whales in particular, with large bouts of XRP leaving crypto exchanges.
This bullish sentiment allowed XRP to cross over $0.74 for the first time in eight months, albeit for a short moment. This surge in price was short-lived, as XRP fell as low as $0.6 in the days after.
However, a recent 80% surge in on-chain activity and trading volume has led to the price of XRP increasing by 4.45% in the past 24 hours and 2.2% in a seven-day timeframe.
Volume spikes of this magnitude often occur before a price rally, therefore, this massive spike in volume has the XRP community speculating that a strong price rally could be on the horizon.
Current Price Action: Can XRP Reach A New All-Time High?
At the time of writing, XRP is trading at $0.6398. The cryptos journey to a new all-time high is definitely not going to be an easy one, as it is now down by 83% from its current all-time high of $3.84.
However, current market dynamics and various predictions from many crypto analysts indicate that the crypto might go on a surge of great magnitude in the near future.
One of these is a prediction from analyst Jaydee, who noted that XRPs recent breakout from the six-year trendline mentioned earlier could lead to a surge to $3 from the current price level.
The major resistance level to watch is $0.74. XRP tested this level a few days ago but failed to close above it. If bullish momentum continues and volume stays strong, XRP could break through $0.74 decisively in the new week. If it does, the next resistance levels are at $0.82 and $1.5.
One of the few factors that could contribute to a strong price increase is regulatory clarity regarding XRPs status, which could boost confidence from institutional investors.
Notably, XRPs non-security status seems to be gaining ground. The European Corporate Governance Institute (ECGI) recently published a research paper acknowledging this non-security status.
Featured image from Pexels, chart from TradingView
Text source: NewsBTC
