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The past few weeks have been predominantly negative for the crypto market, but not without exceptions. XRP managed to set a remarkable record in trading activity, while the price appears to be forming a strong bottom.
XRP Activity Flourishes and Breaks Record #
XRP has set a record for this year. An important indicator has reached an annual peak and surpassed the previous high point. This concerns Velocity, a metric that measures how frequently XRP circulates within the network in this case.
On December 2, the Velocity metric shot up, reports an analyst on CryptoQuant. This shows a strong increase in economic activity. XRP is currently not sitting idle in crypto wallets (digital wallets for crypto), but is changing hands quickly.
XRP Market Divided #
XRP seems very popular among traders, given the peak in the Velocity metric. However, this is not just a bullish (positive) signal, as a lot of XRP is also being sold.
XRP sellers are currently very active. Last week, large investors, so-called whales, sold as much as 150 million XRP in just 48 hours.
At the same time, there is also strong buying pressure from institutional investors. For a month now, XRP has been tradable on the exchange in the form of spot ETFs, exchange products that follow the price of XRP. Since the launch, a lot of capital has been flowing in.
How XRP Price Responds #
The battle between sellers and buyers is also reflected in the XRP price chart. The price has been moving sideways for weeks and at the time of writing, XRP is worth $2.11.
In the past 24 hours, the price of XRP has risen by about four percent. But compared to a month ago, XRP has fallen by almost 9 percent.
At the same time, XRP again found support at the important price level of $2 yesterday. As long as the price manages to hold this, a price increase is possible.
Various analysts also see bullish (positive) signals for XRP. For example, there are predictions for the coin that go up to as much as $8, based on the similarities between the price movements now and those of 2017. In that year, the price rose parabolically in just three months.