Key Insights:
- XRP experiences a 37% drop in daily volume, reflecting broader crypto market conditions and typical weekend slowdowns.
- Despite the pullback to $3.18, XRP maintains a bullish structure supported by strong EMA alignment and RSI stabilization.
- Market-wide decline in volume across BTC and ETH suggests XRP’s correction aligns with a temporary pause, not a trend reversal.
XRP recorded a significant drop in daily trading volume, falling from over $50 million to $31 million, marking a 37% decline. This decrease took place during the weekend, a period often associated with reduced liquidity and lower order book activity across cryptocurrency markets.
The price action involving the XRP has been able to retain support despite the loss of volume. Recently, the asset corrected to the level of 3.18 after the formation of a local high level of the asset, a moderate 3.70%. It came off the bottom of 3.10, which indicates that buyers may have continued to support the currency. Although the speed has decelerated, XRP has a strong bullish structure, which is backed by technical indicators.
The momentum is dampened, yet the trend remains intact.
The RSI of the pair is also not far off the scale, standing at 62, but compared to earlier overbought numbers. This is an imminent cooling side of buying pressure and not a breakdown. The 200-day EMA is lagging far behind the current price, whereas the 21-day EMA is still on the positive side of XRP, further signifying that the long-term upwards trend is still intact.
The decrease in volume was recorded among other leading cryptocurrencies as well. Both Bitcoin and Ethereum entered into a similar pullback, which implies that the decline in activity is not unique to the XRP. Investors in the markets may find weekend trading days as quiet because of the lack of liquidity.
Off-Chain Activity Helps Justify The Entire Market Halt
On-chain data shows that there is a minor loss of capital outflows in XRP and the entire digital asset industry. This trend is in line with the argument that the volume pullback is associated with an overall market breather. It is typical to see short-term reversals in powerful rallies, but it does not necessarily mean a reversal.
Provided that XRP can continue to trade above $3.00 and experience a volume recovery mid-week, the present period of consolidation can serve as the foundation of a price increase. The key factor that will determine the market momentum after weekend effects have evaporated will be renewed liquidity and participation.
