XRP Has Registered a 24-hour Trading Volume Drop of 25% to $1.8 Billion

XRP has registered a 24-hour trading volume drop of 25% to $1.8 billion amid weakening market interest. Despite a slight uptick in the past day, XRP is moving sideways

XRP’s 24-hour trading volume plummeted by 25% to $1.8 billion on Wednesday, as weak market interest drove a drop in both spot and derivatives trading activity.

Despite a slight uptick of 0.8% in the past day, Ripple’s token remained range-bound, juggling between support at $2 and resistance at $2.1 as traders awaited a decisive breakout.

“With a slight uptick on Wednesday, XRP is now trading at $2.08,” said the analysis. “The token has been moving sideways as it trades in a tight range, juggling between support at $2.03 and resistance at $2.09.”

“A breakout from this range could determine the next leg of the trend. Breaking below $2.03 might open the door for further decline toward $1.96. A more aggressive sell-off could push the price toward $1.61, the support level from which it bounced off on April 7.”

“On the upside, a confirmed breakout above $2.09 could pave the way for a rally toward $2.5. A strong move above this level might attract more buyers, potentially pushing the price toward $2.96.”

Key Levels to Watch As XRP Remains in Neutral Territory

The Relative Strength Index (RSI) for XRP now sits at 48, well within the neutral zone, indicating that the asset is neither overbought nor oversold. The RSI has been oscillating around this midpoint for more than a week, suggesting a lack of momentum in either direction.

However, a sustained move above the overbought threshold of 70 could indicate strong bullish momentum, while a slip below the oversold level of 30 might signal strong bearish pressure.

The absence of a strong U.S. futures market for XRP also complicates matters. A significant portion of XRP’s trading activity is still concentrated on overseas exchanges.

But XRP volume on U.S. exchanges has been improving in recent times, data from Kaiko shows. Volume on U.S. exchanges dropped sharply during the first quarter of 2023, likely due to the SEC’s heightened scrutiny of crypto firms.

Despite this, U.S. exchange volume has been trending up since April, suggesting that more market participants are engaging with XRP in the U.S.

After a turbulent period marked by a 34.53% decline in derivatives trading volume, the metric showed signs of recovery, slipping slightly by 0.47% to $3.14 billion.

Meanwhile, options open interest experienced a steeper drop of 53.69% to $339,100, indicating a significant reduction in existing positions. Nevertheless, options volume surged by 73.58% to $2,720, suggesting that some traders are actively repositioning to hedge or speculate amid mounting uncertainty.