According to U.Today, the real trading volume for XRP has seen a substantial increase, rising by an astounding $12 billion. This surge in volume often corresponds with heightened market activity and has the potential to impact price movements. The increase in volume suggests new interest in XRP, which could be due to institutional interest, shifting market sentiment, or significant transactions by large holders.
When trading volume rises, more participants typically enter the market as either buyers or sellers. For XRP, this may indicate that investors are preparing for a future move, possibly driven by speculation or recent changes in the cryptocurrency market. Despite the increase in trading volume, XRP's market cap dominance remains low at 1.4%, according to on-chain data analysis.
Additionally, XRP has become more volatile than it has been in several months, as indicated by the volatility chart. This heightened volatility could signal a significant move in the market, either upward or downward. If the current volume spike leads to a breakout above key resistance levels, XRP may experience a sharp increase. However, if the market momentum weakens, the elevated volatility could result in a sharp retreat, especially if investors decide to book profits from the recent rally.
