XRP, the fourth-largest cryptocurrency by market cap, is making headlines after a notable price rebound following two days of losses. On Friday, XRP bounced from a support level at $2.08, climbing to $2.192 and currently trading around $2.18—a 2.18% gain in the last 24 hours. This uptick has offered some relief to holders after a turbulent week .
However, the positive price action is shadowed by a sharp drop in trading activity. According to CoinMarketCap, XRP’s 24-hour trading volume has plunged nearly 49%, now sitting at $1.76 billion. This significant decrease in volume is raising eyebrows among traders, as lower volume can sometimes signal waning market interest or caution ahead of major events.
XRP/USD Daily Chart, Courtesy: TradingView
What’s Driving the Market?
Several factors are shaping XRP’s current landscape:
• Technical Resistance: Despite the recent bounce, XRP faces strong resistance in the $2.50–$2.60 range. Technical analysts are watching for a decisive move above the 50- and 200-day moving averages ($2.26 and $2.34, respectively) as a signal for further upside .
• Upcoming ETF Decision: The market is closely monitoring the pending decision on Franklin Templeton’s proposed spot XRP ETF, expected on June 17. Approval could attract significant institutional investment and boost liquidity.
• Ecosystem Developments: Ripple recently secured regulatory approval in Dubai for its RLUSD stablecoin, a positive sign for the broader XRP Ledger ecosystem. Additionally, China-based Webus International announced plans for a $300 million XRP-focused corporate treasury, adding to the fundamental momentum.
Should Investors Be Concerned About the Volume Drop?
While the price recovery is encouraging, the steep decline in trading volume suggests that many traders are waiting on the sidelines, possibly anticipating the ETF decision or a clear technical breakout. Historically, sustained price rallies are often accompanied by rising volume, so a continued lack of participation could limit XRP’s upside in the short term .
On the technical front, XRP remains within a symmetrical triangle pattern—a setup that often precedes a breakout. If volume picks up and resistance levels are breached, analysts see potential for a move toward $2.65 or even higher, with some bullish forecasts eyeing the $3 mark in June .
Key Takeaways
• XRP has rebounded after recent losses, currently trading at $2.18.
• Trading volume has dropped nearly 49%, signaling market caution.
• Major resistance lies at $2.50–$2.60; a breakout could trigger further gains.
• The upcoming ETF decision and ecosystem news could be catalysts for renewed momentum.
