XRP Trading Volume Takes a Hit

In a surprising turn of events, XRP experienced a significant decline in trading volume, prompting speculation among market watchers.

According to CoinMarketCap, XRP’s trading volume plummeted by 24% in just 24 hours, landing at around $1.78 billion. This drop is quite noticeable, especially given that XRP had previously been trading between $300 million and $5 billion—in fact, it was reported at $3.5 billion not long ago.

The exact cause of this drop remains unclear, but there are a few theories floating around. Currently, several crypto assets, including XRP, are facing downturns, which can lead to a cautious or bearish sentiment in the market, often resulting in reduced trading volumes.

Traders seem to be taking a wait-and-see approach, anticipating increased volatility ahead of the Federal Reserve Policy Conference scheduled for May 6th and 7th. There’s a general hope that the Fed will maintain its current short-term borrowing rates, while some anticipate possible rate hikes by June.

Interestingly, the recent integration of XRP might have also played a role in the volume decline. Although XRP prices have remained relatively stable, they no longer appear to be as dynamic, potentially contributing to a slowdown in trading activity.

What Lies Ahead for XRP Prices?

As of now, XRP has dropped 0.22% to $2.2 within the last 24 hours, which reflects a slight downturn in the wider crypto market.

XRP is currently attempting to break past the daily simple moving average (SMA) of $2.187, though bullish traders are still in the game.

The Relative Strength Index (RSI) hangs just above the midpoint, providing no clear advantage to either the bulls or the bears at this point. Buyers seem to need to close above $2.6 to gain momentum.

On the flip side, if XRP fails to hold above the SMA 50, it might dip to around $2, potentially leading to further drops down to $1.61, which could be a crucial support level to watch.