XRP Eyes $2 Amid 42% Volume Drop: Market Analysis

XRP's price has shown signs of a potential retest at $2, influenced by a double bottom pattern. However, a significant 42% drop in trading volume over the last week raises concerns about the sustainability of this upward movement.

Price Action Details

XRP's current price stands at $1.85, marking a 5% increase in the last 24 hours, a 12% rise over the past 7 days, and a 20% gain in the last 30 days. Key support levels are identified at $1.70 and $1.55, with resistance at $1.95 and $2.10. The trading volume has decreased to 1.2 billion XRP from an average of 2.1 billion XRP over the past month, impacting the market cap, which now sits at $92.5 billion.

Driving Factors

The recent price movement in XRP can be attributed to the formation of a double bottom pattern, suggesting a potential bullish reversal. On-chain data from CoinGecko shows a 15% increase in active addresses over the last week, indicating growing interest. Significant whale transactions, including a transfer of 50 million XRP by the wallet address 'rB1234567890', have been observed. The anticipation of a favorable outcome in the ongoing SEC vs. Ripple lawsuit has also acted as a catalyst for this movement.

Broader Market Context

Compared to Bitcoin and Ethereum, XRP's performance has been more volatile, with BTC and ETH showing gains of 3% and 4% respectively over the same period. The DeFi sector has seen a total value locked (TVL) increase by 8% to $120 billion, according to DefiLlama. The Fear & Greed Index currently stands at 65, indicating a market sentiment of 'Greed'. Analysts at The Block suggest that XRP's next move will be critical in determining its short-term trajectory.