XRP, the native cryptocurrency of Ripple, dropped on Tuesday, losing 7% due to the martial law declaration in South Korea. It started a mass panic selling on South Korean exchanges, including Upbit and Bithumb, resulting in a brief dip of XRP to $1.89.
These exchanges, which hold large volumes of XRP, stopped trading temporarily, heightening the market situation. However, the trading volume of XRP surged to $44.5 billion, placing it third behind USDT and Bitcoin in the global crypto trading market.
This was mainly because cryptocurrencies are quite volatile, and the market is highly influenced by geopolitical factors, which may cause fluctuations in investor actions. But XRP is holding up well and has started to rise from its lows as its price remains relatively steady. This rebound is backed by good buying activity, which the increasing trading volume reveals.
Amid the market turbulence, XRP whales have remained active, long-term participants in the token. These investors have made over $4 billion in the past three days and are still purchasing more XRP. Data from CryptoQuant also shows the number of whale transactions sending XRP to exchanges, suggesting a rise in intention to sell. Nevertheless, such activity has also increased with the subsequent price rebound.
Institutional investors are also increasingly investing in XRP. Austin Reid, FalconX's Head of Revenue, pointed to a tenfold increase in trading on the platform and noted that institutional participants are as active as tire consumers. Such a trend is highlighted by $95 million in net inflows into Ripple investment products, the historical record of weekly increase, which maintains hope for the chances of XRP ETFs ' approval in the United States.
XRP is now trading at $2.58 within a key rectangle channel formation, a level that acts as a critical resistance point. At this level, the token can attempt to rise above its historical maximum of $3.57. According to the RSI, XRP is overbought, and a price correction can occur soon.
Cryptocurrency market experts, noting the trend, state that if the XRP continues its upward movement, it might again hit prior record highs and even double in size. Such projections are based on historical trends and current prospects due to higher capital inflows and trading volumes.