XRP trading volume surged 50% in 24 hours as its price rebounded to $2.46, while DEX activity recently spiked to a multi-month high.
After last week’s drop to $2.20, XRP XRP $1.96 24h volatility: 4.9% Market cap: $119.06 B Vol. 24h: $2.92 B appears to be regaining momentum amid a broader crypto market uptrend on Oct. 20. The cryptocurrency’s 24-hour trading volume has surged by 50%, now standing at $4.05 billion, signaling a renewed investor interest.
According to data from CryptoQuant, XRP Ledger’s decentralized exchange (DEX) volume showed a striking divergence between Oct. 8 and 17. While the XRP price fell sharply, DEX trading volume spiked dramatically, hitting a multi-month high.
XRP Ledger DEX Volume | Source: CryptoQuant
Analysts interpret this divergence in two possible ways. One possible explanation is capitulation, where heavy selling pressure indicates panic among retail traders. This generally marks the final phase of a downtrend, as weaker holders exit the market.
Moreover, the surge in volume could reflect accumulation by “smart investors,” who are strategically purchasing XRP at discounted levels. Such periods often represent a transfer of assets from “weak hands” to “strong hands,” creating a foundation for potential price recovery.
XRP’s renewed bullish sentiment follows a surge in put option demand after the October 10 crash, which saw prices drop as low as $1.70 on some exchanges. At the time of writing, XRP trades at $2.46, marking a 5% daily gain, according to CoinMarketCap data.
Ripple’s Expansion Plans and Macro Pressure
Recent reports that Ripple Labs plans to raise over $1 billion to establish an XRP-focused digital asset treasury (DAT) have added optimism to the market. The move could tighten XRP’s circulating supply and potentially increase institutional interest in Ripple’s payment platforms.
However, broader macroeconomic pressures persist. The ongoing US government shutdown has delayed SEC activities, including ETF approvals, dimming hopes for an XRP-spot ETF launch this month.
Despite today’s rally, XRP remains 17.5% down over the past month. A Senate vote passing a stopgap funding bill could revive ETF optimism and drive renewed demand.
What’s Next for XRP Price?
On the daily chart, XRP is approaching the middle Bollinger Band (20-day SMA) after bouncing from the lower band, indicating a short-term recovery. The bands suggest a potential breakout ahead and traders should watch for key resistance around $2.80.
XRP price daily chart with RSI and Bollinger Bands | Source: TradingView
Meanwhile, the RSI is showing XRP is still in bearish-to-neutral territory but recovering from oversold conditions. A further move above 50 RSI could confirm bullish momentum. However, if the coin fails to hold $2.30 support, it might see a drop to $2.10.
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