Ripple (XRP) Price Forecast: This $930M Signal Could Decide Next Move -


Ripple (XRP) price rose 30% to reclaim the $0.55 territory on Tuesday April 13, after having dipped to an 11-month low of $0.42 on April 13. Do the bulls have enough in the tank to drive the rally further in the days ahead? 

XRP Trading Volume Drops $930M Despite 30% Price Rally 

XRP price opened trading on April 20 at $0.55, marking a 30% recovery after the global crypto market crash on April 11 had sent prices spiraling to an 11-month low of $0.42. 

This remarkable XRP price recovery over the past week came amid bullish tailwinds from investors seeking to front-run the potential upside from the just-concluded Bitcoin (BTC) Halving event. 

Ripple (XRP) Price Action April 12 – April 23 | Source: TradingView

But interestingly, crucial market data trends suggest the upward trend has not been accompanied by a commensurate increase in market liquidity, allaying fears of an imminent bearish reversal. 

The Santiment chart below tracks the volume of XRP coins traded daily between April 12 and April 20, expressed in USD terms. 

Ripple (XRP) Trading Volume vs Price  | Source: Santiment

As illustrated above, XRP investors traded $1.48 billion on April 12, 2024. But since then the trading volume has been in decline, with just $550 million worth of XRP traded on April 23. 

In clear terms, this implies that despite XRP prices surging 30%, the level of trading activity remains in decline, dropping by a whopping $930 million over the past week. 

Typically, falling trading volume during a period of rising prices suggests a lack of conviction or enthusiasm among market participants. As things stand, XRP traders appear hesitant to commit to large volume positions. 

If it persists, this rare market signal could eventually lead to a bearish reversal as the current bullish price action evident lacks sufficient momentum to break above key resistance levels. 

XRP Price Forecast: Imminent Reversal Towards $0.50

Despite the 30% XRP price surge, XRP trading volume has declined by $900 million within the weekly timeframe. Drawing insights from this critical market signal, XRP price looks set for an imminent correction towards the $0.50 territory. 

The Bollinger band indicator further supports this stance. It shows that after reclaiming $0.55, the bulls now face a looming sell-wall at the $0.56 territory. 

With the current market liquidity significantly lower than the volumes traded when XRP last fell below $0.55, prices could struggle to maintain upward momentum and reclaim that territory.  

Ripple (XRP) Price Forecast | April 2024 | Source: TradingView

However, in the event of a major downtrend, the lower-limit Bollinger band indicates a key support level at $0.45. The presence of a substantial buy-wall at this level suggests that bears may encounter strong hindrance to further downside movement.


This article was originally posted on FX Empire


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


More Related Articles

Info icon

This data feed is not available at this time.

Sign up for the TradeTalks newsletter to receive your weekly dose of trading news, trends and education. Delivered Wednesdays.