XRP, currently the fourth largest cryptocurrency, has seen increased trading activity, with its 24-hour trading volume exceeding $4.18 billion, according to CoinMarketCap.
Various factors could be driving XRP’s trading volume, including increased market activity. The crypto market has been experiencing increased volatility, leading to increased trading interest in XRP.
The crypto market is currently trading in losses in the early Saturday session, extending Friday’s slide, with the majority of digital assets down as investors considered a higher-than-expected inflation report. The February PCE inflation report, released on Friday, revealed a 2.5% year-on-year increase in the price index, with core inflation at 2.8%, which was somewhat higher than expected.
XRP was likewise down, extending its drop since the week’s start.
XRP nears $2
XRP is approaching the $2 mark after a 14% drop this week. This level is important since it could decide the next phase of XRP’s price movement.
Analysts have recently spotted a classic head-and-shoulders pattern on the XRP price chart. The bearish pattern predicts a 55% drop for XRP if validated with a focus on $1.90 as support to hold and the $3 mark to invalidate the setup.
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At the time of writing, XRP was down 6.54% in the last 24 hours to $2.06 and down 14% weekly. XRP has seen a drop since March 25 and will mark the fifth consecutive day of losses if today closes in red. Today’s drop reached intraday lows of $2.06 at press time.
Veteran trader Peter Brandt, in a recent tweet, reiterated his bearish outlook for XRP, citing the appearance of a classic complex head-and-shoulders top pattern. “This could become bullish if 3.0 is exceeded; otherwise, the implication is a decline to 1.07,” Brandt stated.
A return above the daily SMA 50 at $2.41 might be necessary to initiate bullish action and force XRP out of its current range trading. If declines continue, support is envisaged at $1.779 or the daily SMA 200.
