XRP’s real trading volume has increased significantly recently, rising to a staggering $12 billion. This typically corresponds to increased market activity and can potentially impact price movements.

But in the short term, what does this mean for XRP’s price performance? Volume is increasing, indicating renewed interest in XRP. This could be the result of a shift in market sentiment toward institutional interest or large holders making significant trades.

Often, more people are entering the market as buyers or sellers when volume increases. When it comes to XRP, this could indicate that investors are preparing for a future move, either due to speculation or in response to recent changes in the cryptocurrency market. Even with the increased volume, XRP’s market capitalization dominance is currently at 1.4% — still low, according to on-chain data analysis.

This shows that although trading activity for XRP is increasing, it has not yet led to a major change in its market position relative to other cryptocurrencies. Furthermore, as can be seen from the volatility chart, XRP has become more volatile than it was a few months ago.

This could indicate that a significant move is underway in the market. These factors suggest that XRP could have a very dynamic future in the short term. XRP could see a strong rally if the current surge in trading volume leads to a breakout above key resistance levels. However, if the market momentum stalls, the increased volatility could trigger a sharp pullback – especially if investors choose to take profits from the recent rally.