Ryan Lee, chief analyst at Bitget crypto exchange, noted that the XRP surge might trigger a pullback, causing a price decline in early August. However, if the price holds above key support levels (around $0.70), it could resume its upward trajectory later.
XRP trading volume surged past Bitcoin (BTC) on South Korean exchanges this week, reflecting a global trend and causing a 20% price rise, according to CoinMarketCap. This surge, however, appears to be short-lived, raising questions about the token’s long-term prospects.
Data from CoinGecko shows a major shift in South Korean trading activity. XRP made up 40% of trading volume on UpBit, the top exchange in the country, and over 35% on Bithumb and Korbit earlier this week. This change surpassed Bitcoin and Tether’s USDT, indicating a rise in short-term demand for XRP in the Korean market.
The trend spread beyond South Korea, with increased trading volume on global exchanges like Binance and OKX. However, XRP did not surpass Bitcoin or Ethereum (ETH) in global volume leadership. Open interest in XRP futures contracts doubled earlier in the week, showing a bullish sentiment among traders.
XRP Rally Fizzles after SEC Lawsuit Hype
The market returned to normal by Friday. Bitcoin regained its volume dominance in South Korea. Bitcoin lost 0.85%, while XRP suffered a steep decline of 4.70%. South Korean traders are known for fueling euphoric rallies around specific tokens, creating temporary buying pressure, and potentially influencing global prices.
Photo: CryptoQuant
“The constant local media coverage and influencer mentions seem to be driving trading volume towards XRP,” commented Bradley Park, a Web3 analyst at CryptoQuant. “There appears to be a sudden increase in trading activity coinciding with the recent SEC-related news.”
The token’s gains began last week when major futures players, CME and CF Benchmarks, announced the launch of XRP indices and reference rates. This news, coupled with Ripple Labs CEO Brad Garlinghouse’s statement on Bloomberg TV about an expected “resolution very soon” in the ongoing legal battle with the SEC, likely boosted market confidence in XRP.
“These comments might have instilled greater confidence in the XRP market,” wrote Ryan Lee, chief analyst at Bitget crypto exchange. However, Lee cautioned against an extended rally, predicting a potential technical correction in early August.
Lee noted that the XRP surge might trigger a pullback, causing a price decline in early August. However, if the price holds above key support levels (around $0.70), it could resume its upward trajectory later.
A Wait-and-See Approach
The recent surge in XRP volume, particularly in South Korea, highlights the token’s potential for short-term volatility. While positive developments like the launch of XRP indices and CEO Garlinghouse’s comments fueled optimism, the market correction indicates a need for further market validation.
With the SEC lawsuit still looming and broader market trends in flux, a wait-and-see approach seems prudent for investors considering XRP. Long-term prospects will likely depend on the resolution of the legal case and the token’s continued adoption and integration within the financial ecosystem.
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