XRP, the fifth-largest cryptocurrency in the market, has entered a phase of macro consolidation following a significant decline that began on July 20. This consolidation has maintained the token’s price within a range of $0.4858 and $0.5505, before Ripple Labs’ legal victory against the US Securities and Exchange Commission on July 13.
XRP Consolidation Continues Despite Strong Trading Activity
According to insights from crypto market data provider Kaiko, XRP demonstrated extreme trade volume during the summer. XRP’s average trade volume in the previous month reached $462 million, four times higher than the following most prominent altcoins by trade volume.
The question arises as to why XRP failed to sustain its price gains despite its impressive trade volume.
Analyzing the average share of sell volume for XRP provides some insights. Notably, the largest Korean exchange, Upbit, and OKX experienced significant selling pressure, while buying activity was more prominent on US-based Coinbase throughout the previous month.
Another interesting observation is the rise in average trade size for XRP on Coinbase, surpassing all other top ten altcoins.
This suggests that buying demand may have been driven by large traders in the United States, as investors regained access to the token following the July court ruling.
However, it is essential to note that even though XRP tops the list on offshore markets, its share of trading volume in the United States remains lower, ranking it as the sixth most traded altcoin by cumulative trade volume.
Currently, XRP is trading at $0.5063, displaying a stable price within 24 hours. Moreover, the token has maintained a consistent consolidation phase, experiencing a slight decrease of 2.7% and 1.4% over the past seven and fourteen days, respectively.
This raises whether XRP’s uptrend will prevail or if further downside movements are looming.
Is A Bullish Resurgence Or Downtrend Imminent?
Crypto analyst Egrag Crypto recently took to the social media platform X (formerly known as Twitter) to present two contrasting scenarios for XRP’s price movement.
The first scenario suggested a potential dip to $0.43 or even $0.35, which could be seen as a shakeout before a rebound. The second scenario proposed a more optimistic outlook, with XRP potentially aiming for heights of $0.60 and $0.67 before skyrocketing to…
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