Ripple’s XRP is currently trading at $2.85, representing a 3.42% decline over the last 24 hours, as per the latest CoinMarketCap data. The pullback has surprised many, especially since trading volume surged by 24.85% to reach $11.57 billion during the same period. This suggests vigorous investor activity, but not necessarily in a bullish direction.
Price Action and Volatility
In the past 24 hours, XRP fluctuated between $2.81 and $3.02, briefly testing resistance above the $3.00 mark before being rejected. The downward pressure began around midnight and intensified during the early morning hours, pushing the asset steadily lower.
XRP price chart: CoinMarketCap
Despite today’s dip, XRP remains significantly up from its all-time low of $0.002802 recorded on July 7, 2014. The token has gained over 101,858% since then. However, it still trades 25.63% below its all-time high of $3.84 set on January 4, 2018.
Related article: XRP Ledger Records Mysterious $500M Shift to Fresh Address
Ripple still boasts a strong market capitalization of $169.08 billion, ranking it as the #3 cryptocurrency globally. Its fully diluted valuation stands at $285.94 billion, reflecting long-term optimism. Currently, 59.13 billion XRP are in circulation, with a max supply capped at 100 billion XRP.
The circulating supply represents about 59% of the total, highlighting the large reserves still held or locked. Interestingly, the Volume-to-Market Cap ratio is at 6.87%, indicating high liquidity and considerable turnover, a metric that often reflects investor interest even during a decline.
What’s Next?
The sudden volume spike amid a price drop could indicate profit-taking by short-term holders or fear of further corrections. Despite the dip, XRP’s fundamentals appear stable. Long-term holders may view this as a normal pullback, particularly since XRP trades well above key support levels.
Related article: Analyst Warns XRP’s Real Breakout Won’t Begin Until It Smashes $3.84
Still, traders should watch how XRP behaves around the $2.80 support zone. If this level breaks, further downside could be expected. On the flip side, a bounce back above $3.00 could re-ignite bullish sentiment.
While Ripple’s XRP faces short-term headwinds, it remains a major player in the crypto market with strong trading activity and solid fundamentals. Today’s decline may be just a pause in a broader uptrend, but the next 24 hours will be key.
