XRP trading volume surges by 87%, will the price rise accordingly?

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After a week of decline that caused XRP's price to drop over 6%, the token seems to be showing initial signs of a rebound. As of the time of writing, according to CoinMarketCap, XRP's 24-hour trading volume has increased by 87%, reaching $4.57 billion. With the increase in liquidity, XRP seems to have the foundation to respond to changes in demand.

Signs of XRP price rebound

After breaking $2.86 on December 3, XRP experienced a period of decline. Although there were some brief rebounds during this period, the overall market sentiment in the past week still leaned bearish. However, the situation is changing, and early signs of support in the market are gradually emerging. In particular, the increase in trading volume could serve as a catalyst, pushing XRP towards a long-awaited rebound.

As of now, XRP's price has dropped 4.86% in the past 24 hours, down to $2.08. Although the price has declined, this level also indicates that the token's loss positions are gradually decreasing, which may suggest that the market bottom is close.

Support and market recovery

Other technical indicators also suggest that XRP is ready to recover its market losses. According to CoinGlass, XRP open interest has increased by 2.66%, with more than 950 million XRP currently in the futures market on exchanges. From the current market outlook, XRP may have formed the necessary support level around the $2 mark, with the next target being to break through the $2.25 resistance zone.

Fundamentals remain strong

In addition to the technical aspects, XRP's fundamentals also support its recovery. With Ripple Labs launching the RLUSD stablecoin, the XRP ecosystem is continuously expanding. Company executives reiterated that XRP and RLUSD will complement each other and jointly drive liquidity supply. This means that XRP not only has potential in payments and cross-border transfers but may also play an increasingly important role in other financial sectors.

Moreover, the ongoing development of the XRP ledger has led to a new wave of decentralized applications (dApps), promoting the adoption of the XRP market. These new projects not only help enhance XRP's ecological value but may also further stimulate the growth of token demand.

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