Traders are seen buying into the decline with a vengeance as the market tumbled from an important top marked by the failure of XRP’s price to stay above $2. Since then, a marked pickup in buying has been seen, with Upbit and Bybit as the hot platforms. The increase in accumulation was noted by analysts who highlighted considerable rises in Cumulative Volume Delta, which gauges the difference between buying and selling pressure.
Recent market volatility due to geopolitical tensions and changes in economic policy sent XRP into a free fall, with its price dropping so sharply that liquidations ensued. Interestingly, XRP’s price went as low as $1.76 before bouncing back to over $2, which could mean that the initial fall was enhanced by the market makers’ removal of buy-side liquidity, leaving room for opportunistic traders to buy at cheaper prices.
Following this slump, XRP had a strong recovery with the price rising about 30% from its recent lows. The recovery has been attributed to renewed investor confidence and increased buying activity, particularly among traders who saw the dip as a buying opportunity.
Despite the recent rally, analysts warned that XRP remains vulnerable to challenges in the short term. Technical indicators like bearish divergences on both daily and weekly timeframes indicate a retest of the support at $2. For XRP to continue on its upward trajectory, it must remain above this support, and bulls must also do their part to invalidate these divergences.
The last trading session shows XRP is trading at about 2.35, slightly lower than the previous close. The day’s trading range has seen a high of 2.46 and a low of 2.29.
The dip below $2 prompted aggressive buying among traders as XRP prices recovered quickly. However, the market participants need to be watchful since technical indicators are suggesting volatility in the near future.
