On July 15, Ripple’s trade volume increased by more than 1,500%. Although the surge in network activity was brief, it could foreshadow an impending spike in price volatility.
Ripple Gets Ready for Volatility
Traders are paying attention to Ripple.
On July 15, XRP had a huge increase in trade volume, which could indicate a significant price change.
Late Friday, Santiment observed a rise in demand in XRP across all major cryptocurrency exchanges. On July 15, about 19 billion XRP tokens were traded between 23:00 and 00:00 UTC, according to the on-chain analytics firm. According to the business, the unexpected increase in network activity may portend “extraordinary” price movement for this digital asset.
The trading volume of XRP eventually reverted to former levels. At press time, it was hovering at 1.23 billion XRP.
Technically, XRP appears to be reaching a large area of resistance after gaining 13.3 percent in the last three days. At about $0.35, the 100-hour moving average and the upper boundary of the parallel channel that formed on the four-hour chart are functioning as substantial barriers. XRP must acquire enough momentum to break through this supply barrier and initiate a bullish breakthrough toward the 200-hour moving average around $0.45.
It is worth mentioning that a break of the $0.35 barrier level could invalidate the bullish view. Failure to break through this price level may result in a surge of selling pressure, pushing XRP below the 50-hour moving average of $0.32. If XRP loses this critical level of support, it could fall to $0.30 or possibly $0.25.