Santiment data shows that in just two days, the trading volume of XRP was halved. XRP had a $4.87 billion volume on April 14. However, the figure had dropped to $2.43 billion as of this writing.
Volume serves as a gauge of market interest. It indicates a high volume of trading when it rises. On the other hand, the token's volume significantly decreased, suggesting a sharp decline in interest.
Not only did that occur, but the price movement also followed suit. At the time of writing, XRP was trading for $0.49. The same token traded for about $0.54 two days ago; the sudden decrease suggests strong sale pressure.
Will the rescue crew arrive?
However, if the market continues to remain pessimistic, XRP may experience more declines. Usually, the decreasing volume and price action would erode the downward trend.
However, if the price of Bitcoin [BTC] keeps falling, altcoins like XRP might have trouble rising. In the interim, the Ripple token's price plummeted along with other aspects, the most significant of which was its market cap.
XRP was the fifth-most valuable cryptocurrency on the market a few months ago. That was no longer the case, though, as the project was ranked seventh at the time of publication.
Some eye XRP's position
We examined the exchange flow in relation to the short-term price projection. On-chain data indicates that there was a 1.49 million XRP exchange outflow. Conversely, the inflow of exchange was 688,000.
The enormous disparity between the inflow and outflow appears to have a significant impact on the token's value. This was due to the fact that a large outflow suggested a lower willingness among participants to sell their tokens.
So, XRP can level off or move in a sideways direction. However, a drop to $0.45 or less might not occur. Conversely, the token's short-term price fluctuation may range from $0.49 to $0.52.
Long-term prospects for cryptocurrencies could be a touch bleak, however. Other coins like Dogecoin [DOGE] and Toncoin [TON] could pose a threat to XRP in addition to its lackluster price performance.
We saw that DOGE and TON performed better in terms of momentum than XRP. And hence, the token might be flipped by these two. If so, Cardano [ADA] may have to compete with XRP for the tenth position according to market capitalization.
April 2024, Cryptoniteuae