Nov 20, 2024

6thTrade

This week, trading volumes for XRP and Dogecoin (DOGE) have significantly outpaced those of Bitcoin (BTC) on South Korea’s crypto exchanges. The surge in activity has contributed to a sharp rise in the prices of these tokens within a market characterized by intense speculation.

According to CoinGecko data, XRP and DOGE together accounted for up to 30% of the total trading volume on Upbit, South Korea’s largest crypto exchange, and nearly 20% on Bithumb in the last 24 hours. This level of activity surpasses Bitcoin’s usual dominance and highlights a growing short-term demand for these altcoins in the South Korean market.

Some of this heightened volume may be attributed to wash trading—a practice in which automated programs repeatedly buy and sell the same asset to create the appearance of a highly active market.

Upbit led the global market in XRP trading volume over the past day, outpacing major exchanges such as Binance and Coinbase. These trades, conducted in Korean won, were converted into U.S. dollars for analysis. Meanwhile, Binance and Coinbase continue to lead in DOGE trading volume worldwide.

Recent Performance of XRP and DOGE

XRP and DOGE have been standout performers among major cryptocurrencies in recent weeks, both recording gains of over 100% in the past 14 days. Futures products linked to these tokens have also hit yearly highs, underlining their growing popularity.

South Korean traders, known for driving euphoric rallies, appear to be a key force behind this surge, contributing to heightened buying pressure and influencing token prices globally.

Factors Driving XRP Gains

XRP's recent rally began last week, fueled by positive shifts in the U.S. regulatory environment. These changes are benefiting tokens associated with companies previously challenged by the U.S. Securities and Exchange Commission (SEC), such as Ripple Labs, which is closely tied to XRP.

Factors Driving DOGE Gains

DOGE, meanwhile, has gained traction following a Republican victory in the U.S. elections and increased promotional efforts by Elon Musk. Musk, who has been named to lead the proposed Department of Government Efficiency (D.O.G.E)—a non-governmental initiative under the Trump administration—has reignited interest in the token.

Caution Amid Speculative Frenzy

While South Korean interest may suggest a local market peak for these tokens, some analysts remain optimistic about XRP’s near-term potential.

Omkar Godbole, a CoinDesk markets analyst, expressed a bullish outlook for XRP:
“XRP is holding steady above $1 after a powerful rally—the strongest in three years! While intraday charts hint at a possible pullback, it could set the stage for another upward move. Momentum indicators on longer charts remain firmly bullish. Key support levels to watch are 96 cents and 65 cents, while resistance is expected around $1.26 and $1.40, echoing supply zones from September 2021.”

As of Wednesday afternoon in Asia, XRP is trading at just over $1, while DOGE is slightly below 40 cents.

The sustained interest and high trading volumes in South Korea highlight the volatile nature of cryptocurrency markets and the significant role regional trends play in shaping global price movements.