With all cryptocurrency markets bouncing back slowly, it is only normal that there will be some big gains on the charts. Right now, the XRP price is back above US$1.55, which represents a 24-hour increase of over 50%. Given the substantial losses all markets suffered, such gains are not preposterous. The big question is whether or not the XRP price can reach US$3 again in the coming weeks.
XRP Price Reclaims $1.50 as Support
It is uncanny how the cryptocurrency markets have evolved these past 24 hours. After two days of solid losses, we are now having an equally strong bounce. Most currencies have recovered anywhere from 15% to 110% of their lost value in the past few hours alone. This does not mean the Great Cryptocurrency Selloff of 2018 is over just yet. For now, we all get a chance to catch our breaths, but there is still more than enough reason to remain very cautious right now.
It became evident rather quickly that the XRP price would be one of the first to show a major rebound. The XRP price dropped from US$3 all the way to US$0.91 yesterday. Such losses created a solid buying opportunity for those traders who were confident things would go back to normal eventually. As a result, those who bought in near that low are up 50%. Moreover, they are up by 30.7% against BTC as well.
Even though the XRP price is showing strong momentum, we are still in a volatile period for all cryptocurrencies and digital assets. It doesn’t take much effort to send the markets to new highs or even deeper lows. After all, the volatility over the past week has sent the total market cap from US$750 billion all the way to US$440 billion and now back to nearly US$590 billion. Bigger forces are manipulating things to their hearts’ content, and the same pattern will repeat itself eventually.
It is also worth noting that the XRP trading volume has increased rather spectacularly. With almost US$9.5 billion in 24-hour volume alone, XRP is one of the more actively-traded commodities across all cryptocurrency markets. Maintaining such high trading levels will not be easy, but for now, there is no reason to think things will slow down. Even if we were to hit another bull trap, the volume would keep growing due to the sheer panic selling.
As is to be expected, the majority of XRP trading volume originates from platforms that non-South Korean traders won’t be able to access. Bithumb, Upbit, Coinone, and Korbit are all among the top five exchanges ranked by 24-hour volume. The only exception is Bitfinex with its XRP/USD pair. Surprisingly, Bitstamp’s XRP/USD pair is in sixth place, and the first trading market related to Bitcoin is in seventh place. Fresh capital seems to be flowing to XRP again, which can have some rather interesting consequences.
It is unclear what the future holds for XRP or any other market for that matter. A lot of people think the Big Dip is over already, but there is no guarantee that is actually the case. Cryptocurrency has been a volatile industry from day one, and we may not have seen the worst just yet. Many people expect the XRP price to hit US$2 again before the week is over, but the reality may be very different.