XRP Volume Crashes 63% Despite Price Rise, What's Going On?

$XRP's trading volume has declined 63% in the last 24 hours to $3.23 billion, according to CoinMarketCap data.

The surprising volume drop comes as the $XRP price rose nearly 5% in the last 24 hours. At press time, $XRP was up 4.24% in the last 24 hours to $1.46.

The volume drop might not be concerning given a trend usually noticed on Sundays, where trading activity usually declines at the fresh start of a week as traders adjust their positions.

The $XRP price trades in green on a daily basis following a sharp rebound on Friday. $XRP rose about 25% to reach $1.55 on Friday after a sharp sell-off earlier that had driven its price down as low as $1.11.

According to Santiment, panic-sellers might have stopped to notice the massive activity recorded on $XRP Ledger, with unique addresses suddenly skyrocketing to 78,727 in just one eight-hour candle (the highest in six months).

Obvious whale accumulation also occurred during the $XRP price dip, with 1,389 separate $100,000 whale transactions, which is the highest in four months. Santiment noted both as major signals of a price reversal.

Following a week-long massive sell-off, the crypto market is showing signs of recovery, with a handful of digital assets trading in green.

What's next for $XRP?

$XRP remains down 10.3% weekly, but the positive thing is that buyers aggressively bought the dip, pushing the price back into a channel pattern.

If the current rebound is sustained, $XRP will target $1.71 next, where it might face a barrier. However, a successful rise might see $XRP target $1.88 and $2.44 next (the daily MA 50 and 200). Support is expected in the $1 range if declines continue.

February is set to see new amendments activate on $XRP Ledger. Permissioned DEX has achieved validator consensus to activate in two weeks. The current countdown is about nine days, according to XRPScan data. Token escrow is also in a two-week activation period, with the current countdown being four days.