The trading volume of XRP has seen a substantial increase, rising by 40% over the past 24 hours. This surge brought the total spot market volume to $794 million, according to data from CoinMarketCap. 

Furthermore, CoinGlass reported a 56.94% increase in the volume of XRP derivatives trading, particularly perpetual futures, reaching 938,508,249 million. Consequently, the combined trading volume of XRP for the period stands at an impressive $1,097,021,913 billion.

This significant rise in trading volumes is occurring as XRP approaches the critical $30 billion mark in market capitalization. Currently, XRP’s market cap is at $29.32 billion, just 2.26% short of reaching this pivotal threshold. Notably, XRP has previously approached this mark but has yet to maintain its position above it.

The increased trading volume indicates heightened interest from market participants. Despite this, the ratio of market capitalization to trading volume is at 4.66%, which is within the normal range of market activity. If XRP’s market capitalization exceeds $30 billion, it could place the token among the top 600 largest entities globally. The renewed interest and trading activity raise the question of whether XRP can solidify its position above the $30 billion mark.

On-Chain Metrics and Holder Behavior

Over the past ten days, XRP holders have consistently realized losses totaling nearly $20 million, as tracked by the Network Realized Profit/Loss metric on Santiment. This metric helps identify the net profit or loss realized by holders of an asset on any given day. The realization of these losses indicates capitulation, which could lead to a price recovery and a breakout from the current consolidation phase.

Social dominance, a metric that measures XRP’s share in crypto-related discussions, has remained relatively stable. It recorded 1.46% on May 19 and 1.51% on May 28. This stability suggests that despite the price fluctuations, XRP remains a relevant topic among market participants.

Technical Analysis: Potential for Further Gains

XRP has been in an uptrend since April 18, consistently forming higher highs and higher lows. The altcoin is currently attempting to flip the $0.5310 resistance level into support. This level is significant as it represents the 50% Fibonacci retracement of the decline from the April 9 peak of $0.6431 to the April 13 low of $0.4188. If XRP succeeds in this, it could extend its gains by nearly 7%, targeting $0.5703, the high observed on May 6 and April 22.

Source: TradingView

The Moving Average Convergence Divergence (MACD) indicator supports this potential upward movement, with green histogram bars above the neutral line indicating underlying positive momentum. Additionally, the Relative Strength Index (RSI) stands at 50.23, suggesting bullish momentum in the altcoin.

While XRP shows promise of continued gains, a correction remains a possibility. Should this occur, XRP might sweep liquidity at the May 23 low of $0.5027 and find support at $0.4866, a level that has served as a support point for over a month. The outcome of the ongoing SEC vs. Ripple lawsuit also remains a crucial factor, with potential implications for XRP’s price and market position.

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