XRP Trade Volume Plummets by 24%, now at $1.78 Billion - Recent Developments?
Rewritten Article:
Let's dive into the latest happenings surrounding XRP, a digital asset that's garnered attention in the crypto space. In a surprising turn of events, XRP's trading volume has witnessed a steep drop, stirring up curiosity among market veterans.
Glancing at the CoinMarketCap data, we find that XRP's trading volume has plummeted 24% in the last 24 hours, settling at $1.78 billion XRP. For a digital asset that's seen its trading volume bellyflop between $3 and $5 billion in recent times, this new figure is a notable decrease.
$3 Billion in XRP: A Temporary Glitch or a New Normal?
Tomiwabold Olajide
The reason behind this drop in trading volume remains a mystery, but a few possibilities could be at play. The crypto markets are currently experiencing slight profit-taking, with several digital assets, including XRP, finding themselves in the red. When the market mood turns cautious or gloomy, trading volume across multiple assets, including XRP, tends to recede.
Traders seem to be adopting a wait-and-see approach in anticipation of volatility ahead of next week's Federal Reserve policy meeting on May 6 and 7. The markets widely anticipate the Fed to maintain its benchmark short-term borrowing rate unchanged at this meeting, while they are pricing in a quarter percentage point cut in June with two or three more to follow by the end of the year.
One theory suggests that XRP's recent consolidation might have contributed to the decrease in trading volume. While the value of XRP has remained relatively steady, its recent stability might have made it an unexciting prospect for traders, leading to a slowdown in trades.
What's next for XRP?
At the time of writing, XRP was down 0.22% in the last 24 hours to $2.2, mirroring the slight dip in the greater crypto market.
Mapping the Future of XRP:
Tomiwabold Olajide
While XRP is currently struggling to hold above the daily SMA 50 at $2.187, there's a silver lining: bulls haven't yet surrendered their ground. The RSI hovering just above the midpoint does not provide a clear advantage to either bulls or bears. Buyers would take control on a break and close above $2.6, paving the way for a surge to $3.
On the flip side, a break and close below the daily SMA 50 could drag XRP down to the support at $2 near the daily SMA 200. This is a pivotal level to keep an eye on, as a fall below $2 could potentially push XRP's price to $1.61.
#XRP Updates
Although the exact reason for the drop in trading volume remains unclear, recent search results suggest that XRP's trading volumes have remained fairly stable over the past six months, with average daily volumes (ADV) in Q1 2025 sitting at $3.2 billion on top-tier exchanges[2]. Additionally, there was an increase in daily trade volume by 32.53% on May 5, 2025[5].
Despite stable trading volumes, there has been a decline in network activity, specifically a reduction in daily active addresses on the XRP Ledger to around 30,000[1][3]. This decline, together with whale selling and waning social dominance, might be causing XRP's price volatility rather than a direct drop in trading volume. Reduced retail interest, whale activity, and macroeconomic uncertainties might be contributing factors to this decrease in network activity[1][3].
While trading volume itself hasn't significantly dropped, these factors could influence the broader market sentiment and activity.
- The drop in XRP's trading volume could be due to a wait-and-see approach from traders, anticipating volatility ahead of the Federal Reserve policy meeting on May 6 and 7.
- The recent consolidation of XRP might have contributed to the decrease in trading volume, making the digital asset an unexciting prospect for traders.
- Although XRP's trading volumes have remained fairly stable over the past six months, a decline in network activity, specifically a reduction in daily active addresses on the XRP Ledger, might be causing XRP's price volatility rather than a direct drop in trading volume.
