TL;DR
- XRP has surged by 9.45% in the past 24 hours, currently priced at $2.64, marking a notable recovery.
- Despite the price increase, a decline in trading volume and a negative market sentiment suggest weak momentum, which may lead to potential volatility.
- If demand doesn’t pick up, XRP could experience a drop to $2.13, but renewed interest and positive market sentiment could push it to $2.94.
XRP has seen a solid 9.45% gain in the past 24 hours, bringing its price to $2.64. This surge follows a broader market recovery after a period of market losses, primarily due to fears surrounding global trade disruptions, especially after U.S. President Donald Trump announced potential tariffs on Canada, Mexico, and China. However, with the tariff decision being delayed, market sentiment shifted, helping to restore some investor confidence.
While XRP’s rally is impressive, the question remains whether it can maintain this momentum. On-chain metrics and technical analysis paint a less optimistic picture, suggesting that the rise might be short-lived.
Declining Trading Volume and Bearish Market Indicators
Despite the almost 10% price jump, XRP’s trading volume has seen a sharp decline, falling by 42% in the last 24 hours. This drop in trading volume often signals a lack of strong buying interest, indicating that the rally is not backed by solid demand. Without enough market participants driving up the price, the rise may not be sustainable in the long run.
Further, the negative Balance of Power (BoP) stands at -0.57, signaling that sellers still have the upper hand in the market. This indicator reflects the relative strength between buyers and sellers, and when the BoP is negative, it usually suggests bearish pressure is dominating. This further weakens the case for a sustained rally, as it highlights that the market may not have the buying power to push XRP higher.
XRP Price Outlook: Could It Hold or Drop?
If the broader market rally fades and demand for XRP does not increase, it could struggle to hold these gains. The next key support level is at $2.13, and if the bearish sentiment continues, XRP could fall back further, even approaching the $2 threshold.
However, if there is a resurgence in demand for XRP, the token could push toward $2.94, potentially validating the optimism surrounding its short-term future.
While XRP has made impressive gains, its future is uncertain. The lack of strong buying momentum and the prevailing bearish signals suggest that its current price surge could be short-lived unless demand picks up.
