Ripple [XRP] was one of the most traded tokens in the past 24 hours, hence among the most shorted coins.
This spike in volume was priced in by the altcoin, where its valuation declined the same way as the entire crypto market.
XRP volume spikes across multiple exchanges
The data from CoinGlass showed that this spike in Spot volume was consistent across multiple exchanges.
For instance, daily trading volume on Upbit, which mostly constitutes Asian participants, was up by 83%. It was the highest among all, with activity exceeding $193 million.
For the U.S. investors, they traded about $111.7 million on Coinbase, which was a rise of 34%. Moreover, from a global perspective using the Binance exchange, volume increased by 68%, surpassing $131 million.
The Spot markets traded more than $710 million in total, while the Futures markets traded about $3.76 billion. The difference comes from the leverage feature in Futures trading, which amplifies gains or losses.
These figures suggested that most of these trades were shorts, as the price dropped by 6.46% during this period.
XRP falls amid increased selling pressure
The price action charts showed that XRP dropped from $1.46 to $1.34 during this period. The drop led to a breakdown below $1.40, a previous support level, though it was not a strong one then.
Breaking below $1.34 could see the altcoin crash further below $1.25.
Source: XRP/USDT on TradingView
However, XRP was holding above the $1.34 level, suggesting a reduction in sell pressure. Still, price needed to flip $1.40 into support for a rally toward $1.66, as it previously did when it hit $1.34.
These results indicated that XRP remained a significant player, particularly due to its strong on-chain and fundamental performance.
Why all is not lost for Ripple
To begin with, the number of daily successful transactions on the XRP Ledger spiked by 40%. This metric jumped from 1.5 million to 2.5 million at press time. This was an indication of real chain activity.
Source: XRPscan
Additionally, XRP Ledger outpaced its peers in terms of on-chain market capitalization for Real-World Assets (RWAs).
As per rwa.xyz data, XRP’s RWA market cap grew by 23.42% in the last 30 days, reaching $2 billion. This value flipped Solana [SOL], whose cap grew by 44%, reaching $1.70 billion.
Despite their growths, they represented 0.50% and 0.45% of the total market share, with Canton [CC] leading at 87.9%.
Meanwhile, Arizona’s proposed Digital Assets Strategic Reserve Fund bill added XRP. Other assets in this list were Bitcoin [BTC], DigiByte, stablecoins, and non-fungible tokens [NFT].
Altogether, the fundamentals and chain activity look bullish for XRP. However, sell pressure from investors and a bearish market on the 4-hour chart showed that things were not good for the altcoin.
Final Summary
- XRP saw a spike in daily volume across 3 major exchanges, signaling market-wide acceptance of its price weakness.
- XRP’s on-chain activity and fundamentals pointed to a bullish outlook even though price action did not align.
