According to CoinMarketCap data, XRP trading volume has fallen over 40% in the past 24 hours, reaching $3.23 billion. The decline in trading activity comes as XRP enters its fourth consecutive day of losses since reaching a high of $2.65 on May 14.
At the time of writing, XRP is down 3.43% in the last 24 hours, trading at $2.34. The decline in volume and price might suggest cooling momentum, as investors take profits after a significant increase in the previous week.
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XRP futures open interest surged by over $1 billion in the past week, according to Glassnode, rising from $2.42 billion to $3.42 billion, marking a 41.6% increase. This sharp increase in leverage coincides with its price rally, indicating increased speculative activity and growing directional conviction. Amid the rise, XRP averaged 3,500 wallets being created per day over the past month, according to Santiment data.
Against this backdrop, whether the recent drop in volume and price is a temporary breather or the start of a trend reversal is yet unknown. For now, XRP holders are waiting to see what happens next.
XRP price action
Cryptocurrencies fell early Saturday as investors paid attention to macroeconomic concerns, with XRP dropping as much as 4%. According to CoinGlass data, crypto liquidations rose to $298 million in the last 24 hours.
The broader cryptocurrency market dipped to $3.27 trillion, reversing earlier gains after briefly touching a weekly high. XRP was not immune, reaching a low of $2.31 in the early Saturday session, as the slide neared its fourth day.
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The daily RSI is slightly above the midpoint, increasing the chance of range-bound action between $2.65 and $2 in the coming days.
If the market rebounds, XRP may seek a retest of the $2.65 level after failing to go beyond it on May 12 and 14. Sellers may pose a significant struggle at this level, as anticipated, but if the bulls prevail, XRP may hit $3.
