XRP Skyrockets 58% in Volume Amid $377 Million Crypto Market Sell-Off

As a seasoned crypto investor with battle-scars from the 2017 bull run and the subsequent bear market, I find myself observing the current market dynamics with a mix of caution and intrigue. The surge in XRP trading volumes is indeed eye-catching, but I’ve learned to read between the lines. A spike in volume doesn’t necessarily equate to a price pump unless backed by strong fundamentals or a positive news narrative.


In simple terms, the seventh most valuable cryptocurrency, XRP, has experienced a surge in trading activity over the past day, jumping by approximately 58%. This surge occurs amidst a wider trend of selling off in the crypto market, leading to around $377 million worth of liquidations.

On Friday, many cryptocurrencies experienced a general drop in value after it emerged that the United States is examining Tether, a stablecoin issuer, over potential breaches of sanctions and anti-money laundering guidelines.

As a crypto investor, I quickly noticed that Paolo Ardoino, CEO and CTO of Tether, swiftly responded on his platform shortly after the Wall Street Journal article, dismissing it as “recycled rumors.” According to Ardoino’s statement, there is currently no evidence suggesting that Tether is under investigation.

Over the past day, the trading volume of XRP has surged by approximately 58.62%, reaching over $1.36 billion, or roughly 2.66 billion XRP as per CoinMarketCap statistics. This significant rise in trading activity could suggest heightened market interest, with traders potentially taking advantage of price fluctuations or readjusting their positions in reaction to the recent market downturn.

Currently, Ripple (XRP) has experienced a decrease of approximately 2.29% in the last 24 hours, with its value sitting at around $0.516. Over the past week, it’s also seen a decline of about 7%.

Crypto market faces $377 million liquidations

Based on information from CoinGlass, there were more than $377 million worth of crypto-related futures liquidations within the last 24 hours due to the market decline. This figure represents a substantial jump of 182%.

In simpler terms, individuals who wagered that prices would rise suffered a collective loss of approximately $308.76 million. More specifically, people trading Bitcoin (BTC) and Ethereum (ETH) collectively lost around $44.21 million for BTC and $45.64 million for ETH. The single largest order that was liquidated took place on Binance, involving a trade of Bitcoin and US Dollar Tether worth about $3.59 million.

Liquidation happens when a trading platform closes a trader’s leveraged deal because the trader can’t fulfill the margin obligations. A positive aspect of this is that a series of liquidations could indicate a change in market direction, possibly due to excessive emotional trading reactions.

If market trends continue to be lackluster leading up to the weekend, it’s likely that we might see a rise in fear, uncertainty, and doubt (FUD), which could potentially lead to a market rebound starting from next week. This is based on the perspective shared by Santiment in their recent tweet.

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2024-10-26 16:46