XRP, the seventh-largest cryptocurrency, has experienced a substantial increase in trading volumes, rising by 223% amid a broader cryptocurrency market sell-off.
Cryptocurrencies reeled from a bout of risk aversion in the global markets on Monday. The broader cryptocurrency market has been hit hard, with liquidations surpassing $1 billion. Liquidations occur when leveraged positions are forcibly closed due to margin calls, often resulting in sharp price movements.
In the last 24 hours, $1.13 billion were liquidated across the crypto market, with $963 million in bullish crypto positions liquidated, according to CoinGlass data, indicating that leveraged bets are becoming unsustainable.
According to CoinMarketCap data, XRP has seen a 223% surge in trading volumes over the last 24 hours, amounting to $3.4 billion.
The 223% rise in volumes reflects a significant uptick in trading activity, suggesting that investors are capitalizing on the volatile price movements.
The substantial increase in XRP trading volume might also suggest that traders may be taking advantage of price swings to execute short-term trades. Also, speculative interest and news-driven trading could be contributing to the heightened activity.
XRP price action
The XRP price has been under selling pressure, falling for five days in a row after reaching highs of $0.659 on July 31. This continuous sell-off has pushed XRP to levels that have compelled the market to pay attention.
At the time of writing, XRP was down 16.77% in the last 24 hours to $0.452 and was down 26.30% for the week. If XRP ends lower today, it will be down for the sixth day in a row. Today's sell-off was the greatest, with XRP plunging to a low of $0.436, last seen in early July.
On the upside, a decisive break above the daily moving averages of 50 and 200, at $0.52 and $0.543, respectively, could signal a bullish comeback. Meanwhile, XRP could see a relief rally as bears take a breather.
If the declines continue, the next major support levels for XRP are $0.403 and $0.387, where the price rallied sharply in early July.
