The trading volume of XRP has surged over the past 24 hours by 92%, despite major cryptocurrencies starting the month of December in red. The entire crypto industry experienced a liquidation spiral, erasing almost $638 million of leveraged positions on major exchanges. Just about 90% of these losses occurred in long positions, indicating how traders who bet on a rebound were taken by surprise.
Major Exchanges Smashed by Heavy Liquidations
CoinGlass data indicate that Binance, Hyperliquid, and Bybit had a combined total of more than $160 million in liquidations, with the majority of them long traders. XRP dropped by 6.74% in the past 24 hours to trade at $2.04, and hit an intraday low of $2.01 before somewhat recovering.
XRP Trading Volume Surge Signals Active Market Positioning
Although the price went down, trading volume has increased 92% to reach $3.92 billion, showing that traders are actively positioning themselves in the market. The support level of $2 is regarded to be significant to the further movement of XRP because the further corrections to $1.70-1.80 may happen in case of further sales pressure.
ETF Developments Support Ripple Amid Weak Market
Ripple has remained in the news with developments in institutions. The Singapore branch of Ripple, RMA, received a broadened payment activity scope from the Monetary Authority of Singapore (MAS) and is now able to expand its regulated offerings.
XRP ETFs have also brought a new dimension to the dynamics in the market.. In early adoption trends, Canary Capital XRP ETF XRPC was found to outperform all the other spot XRP ETFs in combination. A busy XRP ETF season is predicted to come soon with other ETFs of 21Shares, CoinShares, and WisdomTree set to be launched.
Nevertheless, profit-taking by traders who had already purchased XRP on the expectation of ETF launches also added to the current price drop. Analysts observe that this buy the rumour, sell the news behaviour increased the pressure to sell.
Technical breakdown and market forces
XRP dropped to lower support levels of $2.21 and $2.24 and it was unable to sustain above levels of $2.05, indicating the potential decline. The altcoin was mirroring larger market anxiety by liquidations alone amounting to $13.2 million in the past 24 hours.
Other pressures entail:
- Weak on-chain activity
- Falling whale holdings
- Macro uncertainties such as Fed rate expectations, Bank of Japan hints of policy, and increasing Japanese bond yields.
The XRP might experience further corrections in the upcoming week without a market stimulus, whether in the form of an ecosystem development or macro tailwinds.
