Ripple (XRP) was one of the most traded tokens in the last 24 hours, and therefore among the most shorted coins.
This surge in volume was mirrored by the altcoin, where its valuation declined similarly to the entire crypto market.
XRP volume increases on several exchanges
Data from CoinGlass showed that this increase in Spot volume was consistent across multiple exchanges.
For example, daily trading volume on Upbit, which is primarily comprised of Asian participants, increased by 83%. This is the highest of all, with activity exceeding $193 million.
For US investors, they traded around $111.7 million on Coinbase, an increase of 34%. Additionally, from a global perspective, thanks to the Binance exchange, volume increased by 68%, exceeding $131 million.
Source: CoinGlass
Spot markets traded more than $710 million in total, while futures markets traded about $3.76 billion. The difference comes from the leverage feature in futures trading, which magnifies gains or losses.
These figures suggest that most of these transactions were short sales, with the price falling 6.46% during this period.
XRP Falls Amid Increased Selling Pressure
Price action charts showed that XRP rose from $1.46 to $1.34 during this period. The decline led to a break below $1.40, a previous support level, although it was not strong at the time.
A move below $1.34 could see the altcoin collapse further below $1.25.
Source: XRP/USDT on TradingView
However, XRP was holding above the $1.34 level, suggesting a reduction in selling pressure. Nonetheless, the price was expected to turn $1.40 into support for a rally towards $1.66, as it did previously when it hit $1.34.
These results indicate that XRP remains an important player, especially due to its strong on-chain and fundamental performance.
Why all is not lost for Ripple
For starters, the number of successful daily transactions on the XRP Ledger increased by 40%. This metric increased from 1.5 million to 2.5 million at the time of publication. This was an indication of real channel activity.
Source: XRPscan
Additionally, XRP Ledger has outperformed its peers in terms of on-chain market capitalization for real-world assets (RWA).
According to data from rwa.xyz, XRP’s RWA market cap increased by 23.42% over the last 30 days, reaching $2 billion. This value overthrew Solana (SOL), whose capitalization increased by 44%, reaching $1.70 billion.
Despite their growth, they accounted for 0.50% and 0.45% of the total market share, with Canton (CC) leading with 87.9%.
Meanwhile, Arizona’s proposed Strategic Reserve Fund for Digital Assets bill added XRP. Other assets on this list were Bitcoin (BTC), DigiByte, stablecoins, and non-fungible tokens (NFT).
Overall, the fundamentals and on-chain activity look bullish for XRP. However, selling pressure from investors and a bear market on the 4-hour chart showed that things were not looking good for the altcoin.
Final Summary
- XRP saw an increase in daily volume on 3 major exchanges, signaling market-wide acceptance of its price weakness.
- XRP’s on-chain activity and fundamentals indicated a bullish outlook even if price action did not align.
