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Rapid activity on XRP

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XRP is already showing signs of massive volatility in the upcoming days. The data reflects the fact that there is high growth in user activity on the Ripple blockchain in the past few days.

What high trading volume means for XRP

XRP demonstrated a very stable price over the past few weeks however last weekend saw a massive surge in the trading volume of XRP. According to data, the trading volume surged to around 18.7 billion XRP per hour. This is one of the highest levels of trading volumes XRP has reached in the past few months.

If we analyze the historical data of XRP such high trading volumes on XRP are always followed by extreme market volatility. However the previous historical data points toward an anomaly.

In the last weeks of June when XRP witnessed a high trading volume it resulted in the subsequent appreciation of XRP against the USD and various other major cryptocurrencies. However, this event is contrasted by the fact that at the beginning of June a high trading volume on XRP resulted in a massive price correction on XRP.

The primary reason behind such volatility after extreme trading volumes is attributed to the fact that such volatility either supports a bearish or bullish expectation in the market. However, this can also result in XRP overcoming either a major support level or resistance level.

Disclaimer: The opinions expressed in the Blog are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product. It is only intended to provide education about the financial industry. Please do your own research.


Author - Govind R.