A drop in trading volume was caused by the sudden and severe price drop that XRP recently suffered. Many traders and investors were taken aback by this abrupt change, which has caused them to worry about the state of the market and XRP’s prospects going forward.
With a nearly 2% decline, the price of the digital asset dropped from $0.61 to about $0.6. The implications are more profound when taking into account the trading volume, which also fell dramatically during this time, even though a 2% decline might not seem disastrous at first.
The weaker weekend trading session when market activity typically tends to be lower could be the cause of the volume decline. But this is not the only thing at work. Its inability to overcome the crucial $0.61 barrier, which has served as a psychological barrier for the asset, is primarily to blame for XRP’s recent difficulties.
Since it presented XRP with its first significant obstacle following its attempt to breakout earlier this year, this resistance level has proven to be a formidable barrier. There is now more selling pressure as a result of the inability to maintain momentum and break through this crucial level, which has also reduced buying support. As a result of this situation, traders are becoming less confident in the market and are retreating from their positions, which has resulted in the volume decline mentioned earlier.
The market’s response points to a growing lack of confidence regarding XRP’s ability to overcome the $0.61 barrier and maintain any upward momentum in the near future. The market is keeping a careful eye out for any indications of fresh buying interest as XRP remains close to the $0.60 mark.