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XRP volumes are surging ahead of Bitcoin and Dogecoin in South Korea. What’s next?
South Korean markets tend to prefer XRP over larger assets like Bitcoin and Ether, and an increase in volume tends to precede price anomalies on local exchanges.
What to know:
XRP is back on top of the lists on the largest exchanges in South Korea.
The asset recorded a volume of $600 million on UpBit and over $200 million on Bithumb. Bitcoin's trading volume was less than half of those levels.
An increase in trading volume is often a harbinger of greater price volatility.
XRP trading volumes on the largest cryptocurrency exchanges in South Korea have surpassed those of bitcoin (BTC) and ether (ETH) in a sign of significant interest that often precedes price volatility.
The total transaction volume against the won on UpBit, Bithumb, and Korbit, the largest exchanges in the country by volume and users, exceeded $800 million in dollar value in the last 24 hours.
XRP recorded over $200 million in volumes on Bithumb and $600 million on UpBit, with bitcoin (BTC) trading volumes less than half of those on both exchanges. Interest in other assets, such as dogecoin (DOGE) or ether (ETH), was even lower, reaching only a tenth of the demand observed for XRP.
A sharp increase in trading volume is often a precursor to greater volatility as it may signal that market participants are anticipating events that justify taking speculative positions.
A high volume may precede a price breakout if those positions support a strong move through resistance or support levels. They could also indicate a price peak or trough, which could lead to a reversal if the volume represents panic selling or aggressive buying at levels perceived as undervalued or overvalued.
South Korean traders are known for driving euphoric surges in tokens, contributing to buying pressure and possibly influencing prices.
XRP has become a popular token among Korean traders this year, and political events often trigger sudden movements in XRP markets locally, as previously shown by a CoinDesk analysis.
Tuesday's volume spike comes after a South Korean court issued an arrest warrant for President Yoon Suk Yeol on Tuesday morning. The warrant was requested due to Yoon's controversial and fleeting decision to impose martial law in early December.
