XRP Transaction Volume Surges, but is This Enough to Propel its Price Higher?
XRP has been caught in a firm downtrend in recent times, with today’s price action being firmly controlled by the cryptocurrency’s bears. This downtrend has led to crypto to hover around its recently establish yearly lows of $0.20, and a failure to garner any upwards momentum could lead the cryptocurrency to see significantly further losses.
This bearishness comes as utilization of the XRP network reaches all-time-highs, and it remains unclear as to whether or not this potentially bullish fact will be enough to bolster the crypto’s near-term price action.
XRP Faces Further Bearishness Despite Strong Network Activity
At the time of writing, XRP is trading down over 2% at its current price of $0.218, which marks a notable decline from its daily highs of just under $0.23.
XRP’s recent bearishness has come about as a result of the aggregated crypto markets seeing heightened selling pressure, with Bitcoin hovering within the lower-$7,000 region after it failed to find any support above $10,000 in late-October.
This recent bearishness reached a boiling point in late-November when its price dropped as low as $0.20, which marked the lowest price seen throughout 2018 and 2019.
Although the crypto was able to post a strong bounce from these lows, it still remains unclear as to whether or not there are currently enough buyers to help bolster the cryptocurrency’s price action in the near-term.
One factor that investors and traders alike should keep in mind is the fact that Ripple recently unlocked one billion XRP from escrow, which is typically done just prior to them selling these tokens in order to fund their operations.
Whale Alert, a group that analyzes major token movements throughout the crypto markets, spoke about Ripple’s latest escrow unlock in a recent tweet, saying:
“1,000,000,000 #XRP (225,092,032 USD) unlocked from escrow at Ripple Escrow wallet.”
This could provide a steady stream of selling pressure on XRP’s price in the near-term and could suppress any bullish momentum that the crypto attempts to incur.
On the other hand, XRP’s network activity did set fresh all-time highs this past week and has incurred unprecedented growth in recent times.
Because most investors believe that the future success of XRP is solely reliant on its network utilization, this growth may ultimately prove to be a highly bullish thing for the cryptocurrency.
Disclaimer: This article is not meant to give financial advice. Any additional opinion herein is purely the author’s and does not represent the opinion of EWN or any of its other writers. Please carry out your own research before investing in any of the numerous cryptocurrencies available. Thank you.