Ripple Labs-affiliated coin is in the spotlight as the XRP trading volume and price show bearish consolidation on the daily chart. At the time of writing, the XRP price had slipped by 0.16% in 24 hours and is now changing hands for $2.191. The digital currency moved from a low of $2.18 to a high of $2.2 before settling at the current level. The XRP volume may determine its next major shift amid the close trading range shift.
XRP Trading Volume Drops, Should Investors Be Worried?
XRP trading volume is one of the core metrics that gauges investor interest and adoption trends. According to data from CoinMarketCap, the volume has dropped by 32.5% to $1,445,253,443.43. This drop is unusual, as the coin has recorded mostly high volume for most of the week.
Beyond XRP, other tokens within the Ripple ecosystem, including RLUSD, have also seen a drop in volume. Market data shows that the stablecoin has dropped 57.87%, with just $23,583,892.16 traded in 24 hours.
There has been a correlation between the XRP price and RLUSD volume, as reported on different occasions. For instance, when the stablecoin volume rallied by 45% in 24 hours on April 24, speculation mounted that the XRP price could reclaim a 45% high. Although this forecast has yet to materialize, the odds have always remained high.
With trading volume now down, whether or not the bullish momentum can be sustained remains unknown.
What Next For Ripple Coin?
A number of events in the Ripple Labs ecosystem are set to change the outlook of the coin remarkably. The acquisition of Hidden Road for $1.25 billion and the hype around the firm’s bid on Circle remained on the horizon.
While these trends can shape the broader ecosystem sentiment around the XRP price, the historical outlook might help determine what to expect for the rest of May.
According to Cryptorank data, the coin’s average growth rate is over 25%, setting it up for a potentially bullish run. Thus far this month, despite the broader market volatility, the coin has recorded a marginal growth of 0.21%.
If history repeats itself and XRP trading volume reverts to positive, the Ripple coin may see a breakout. Despite the XRP ETF decision delay from the US SEC, the eventual approval of the product can help shape long-term settlement around the coin. With Paul Atkins now the Chairman and the commission’s pro-crypto stance, the expectation of the ETF approval remains high.
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