XRP (Ripple) Drops 6% as Trading Volume Surges Past $3 Billion

The fourth-largest cryptocurrency by market cap experiences a notable price correction amid broader market selling pressure, with XRP trading volume exceeding $3 billion in 24 hours despite the downward price movement.

XRP Faces Resistance at Key Technical Level as Market Turns Bearish

XRP, the fourth-largest cryptocurrency by market capitalization, has entered a downward trend as the broader crypto market experiences selling pressure during Wednesday's early trading session. The digital asset has declined by 6.35% over the past 24 hours, bringing its price down to $2.137 and marking its second consecutive day of losses.

This bearish movement comes after XRP struggled to break past critical resistance levels, notably the daily Simple Moving Average (SMA) 50, which currently sits at $2.19. Recent bullish attempts to push beyond this threshold have failed to produce a sustained breakout, suggesting that the cryptocurrency might be entering a cooling-off period following its recent rallies or experiencing profit-taking from short-term traders.

XRP Trading Volume Surpasses $3 Billion Despite Price Decline

Despite the price downturn, XRP's trading volume has remained robust, exceeding $3 billion in the past 24 hours according to data from CoinMarketCap. This surge in trading activity amid falling prices indicates significant market repositioning, with traders potentially preparing for the digital asset's next directional move.

The substantial trading volume suggests that despite the current bearish sentiment, there remains considerable interest in XRP among crypto market participants. The high trading activity could signal that both buyers and sellers are actively adjusting their positions in anticipation of upcoming market movements, potentially influenced by the economic data releases expected in the coming days.

XRP Technical Analysis Points to Potential Support Levels

The recent price decline has pushed XRP below the daily SMA 50 at $2.19, with the next significant support level appearing at $2.02. This support zone coincides with the daily SMA 200, which could provide a cushion if the price continues to fall. Technical analysts are closely watching these levels to determine whether XRP can hold above key support or if further downside is imminent.

According to Glassnode data, XRP Hot Capital – a measure of liquidity in readily available exchange wallets – has seen a remarkable increase from $0.92 billion on April 20 to $2.17 billion on April 28, representing a 134.9% surge. Despite this impressive rebound, the metric remains approximately 72% below its December 2024 peak of $7.66 billion, suggesting that while liquidity is improving, it has not yet returned to previously established highs.

Broader Crypto Market Pressures Impacting XRP Performance

The crypto market as a whole is experiencing tension as investors anticipate several key economic indicators that could provide insights into the health of the U.S. economy. Of particular interest is the upcoming release of the personal consumption expenditures price index for March, which serves as the Federal Reserve's preferred inflation gauge.

This macroeconomic uncertainty has contributed to widespread selling across digital assets, with Bitcoin and most other cryptocurrencies trading in the red. According to CoinGlass data, liquidations across the crypto market have reached $328 million in the last 24 hours, highlighting the significant downward pressure currently affecting the space.

XRP Investors Watching Economic Data for Next Price Direction

As XRP continues to navigate this challenging market environment, investors are closely monitoring upcoming economic data releases that could influence both traditional and crypto markets. The cryptocurrency's price action in the coming days will likely be heavily influenced by these macroeconomic factors, alongside any XRP-specific developments.

The current market conditions present both risks and opportunities for XRP traders. While the price has recently declined, the substantial trading volume suggests that market participants remain engaged, potentially positioning themselves for future price movements based on their interpretations of market signals and upcoming economic data.

Conclusion

XRP finds itself at a pivotal point as it contends with technical resistance levels, broader market selling pressure, and anticipation of significant economic data releases. The cryptocurrency's impressive trading volume despite price declines indicates continued market interest, though immediate price prospects remain uncertain.

For XRP investors and traders, maintaining awareness of both technical indicators and macroeconomic developments will be crucial in navigating the current market environment. As the crypto market continues to process new economic information, XRP's price action in the coming days could provide important signals about its medium-term trajectory.