Could XRP Be Exhausting Its Rally? On-chain Data Shares Insight

XRP has faced opposition to its latest run following the surge to $0.93 a week ago, leading market watchers to believe the rally might be coming to an end.

Amid the bullish sentiments elicited by the recent Ripple vs. SEC case ruling, XRP rallied by 99% to $0.9380 on July 13. However, opposition stationed by the bears has hedged against further upsurge, leading to concerns of rally exhaustion. On-chain data provides some insight.

Notably, XRP’s goal was to leverage Judge Analisa Torres’ ruling to solidify its position above the $1 price, flipping it into support. However, the bears had a different plan, displacing the asset from the $0.9 territory. XRP eventually closed on July 13 at $0.8153.

XRP Faces Declines in Volume

In the aftermath of the ruling, XRP’s trade volume skyrocketed to bullish levels as investors looked to capitalize on the prevailing bullishness. Volume soared to a 23-month high of $10.4 billion on July 13, underscoring the immense demand for XRP.

Despite a drop from the July 13 high, XRP’s volume remained fairly high in the days immediately after the ruling. In addition, XRP witnessed an impressive surge in global trades, skyrocketing to levels above 4 million trades per minute at some point.

However, volume continued to decline from the $10.4 billion peak for four days, dropping to $2.5 billion on July 17. Regardless, this value was over two times the annual average. 

Trade Volume Recovers

XRP’s trade volume observed an uptick on July 18, increasing by $120 million from the low witnessed the previous day. This increase was not very significant, but it invalidated the prevailing assertion that trade volume would continue to decline due to a gradual drop in interest.

Interestingly, XRP registered an even greater increase in trade volume the next day. Notably, volume on July 19 surged to an impressive $3.9 billion. XRP leveraged this increase in interest to reclaim the $0.80 price territory, closing the day with an intraday gain of 5.40%.

The erratic trade volume and fluctuating prices of XRP do not necessarily indicate exhaustion of the rally. Rather, they suggest market uncertainty and indecision among traders. The asset is in a crucial position, with market participants eagerly watching the aftermath of the recent court ruling.

As of press time, XRP is changing hands at $0.7739, trading flat over the past 24 hours. XRP still maintains a gain of 7.7% in the last seven days, with a 54% appreciation over the past month.

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• Source: https://thecryptobasic.com/2023/07/22/could-xrp-be-exhausting-its-rally-on-chain-data-shares-insight/?utm_source=rss&utm_medium=rss&utm_campaign=could-xrp-be-exhausting-its-rally-on-chain-data-shares-insight