“XRP Price Rises 25% on Bitcoin Halving: But, What’s Next?”

Between April 13 and April 20, the XRP price increased from $0.42 to $0.53. With XRP facing impending selling pressure at the $0.55 level, do bulls have enough momentum to continue pushing higher in the coming days?
XRP trading volume trends down despite 8% price increase
At the start of trading on April 20, XRP was priced at $0.52, its highest point of the week and marking a 25% recovery after global markets saw prices fall to an 11-month low of $0.42 following the April 11 crash.
This notable XRP price recovery over the past week comes as investors seek to pre-empt possible upside from the just-concluded Bitcoin (BTC) halving event.
Interestingly, however, key market data trends suggest that the upward move has not been accompanied by an equal increase in market liquidity, fueling fears of an impending bearish reversal.
The Santiment chart below tracks daily XRP coin trading volume in U.S. dollars between April 12 and April 20.
As the chart above shows, XRP investors traded $1.48 billion on April 12, 2024. But trading volumes have been declining since then, with just $698.4 million worth of XRP traded on April 19.
To put it in plain terms, this means that despite a 25% surge in XRP’s price, trading activity levels are still declining, dropping by $782 million over the past week.
Typically, falling volume during a period of rising prices indicates a lack of confidence or enthusiasm among market participants. As things stand, it seems that XRP traders are afraid to take large positions.
If sustained, this rare market signal could eventually lead to a bearish reversal as the current bullish price action lacks enough momentum to break above a key resistance level.
XRP Price Prediction: Reversal to $0.50 imminent
Despite a 25% increase in XRP price, XRP trading volume has dropped by $780 million on the weekly timeframe. Insights gained from this important market signal show that XRP price looks set to reverse towards the $0.50 region.
This stance is further supported by the Bollinger Bands indicator. It shows that after reclaiming $0.52, bulls are now facing impending selling pressure in the $0.55 area.
Since current market liquidity is significantly lower than trading volume when XRP last dropped below $0.55, it may be difficult for the price to maintain upward momentum and reclaim this area.
However, in case of a major downtrend, the lower band of the Bollinger Band indicates a critical support level at $0.45. There is a significant buying barrier at this level, which means that the bears may face strong resistance to further downside.
Disclaimer: This content is for informational purposes only and should not be considered financial advice. The opinions expressed in this article may reflect the personal opinions of the author and do not necessarily reflect the opinions of The Crypto Basic. Readers are encouraged to conduct thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.