XRP, one of the most controversial cryptocurrencies in existence has been able to see a swift recovery since March 12, when the crypto and stock markets crashed. The lowest price of XRP was anchored at $0.10 on most exchanges and the digital asset is currently trading at $0.206, basically more than a 100% price increase in 1 month and a half.
Surprisingly, there was not a lot of continuation above the $0.20 crucial level. Traders are probably not convinced about the recent rally as XRP has been notably weaker than other cryptocurrencies for the past year.
Interest in XRP Seems to Be Fading Away
Even though the price of XRP is basically the same as it was before the crash, its trading volume continues decreasing every day. In February 2020, the digital asset trading volume peaked at around $6.4 billion in 24 hours and saw an average of $3 billion for the next days. The 24-hour volume has continued declining to hit an average of $1.7 billion in the last few days although it did go up today.
Google search trend seems to show the same picture. XRP peaked in February with 77 points of interest according to Google but has declined down to only 32 currently. Usually, when a cryptocurrency is in a bull run, the interest and trading volume go up, however, the opposite seems to be happening with XRP. Are investors simply concerned about the possibility of XRP crashing down again?
If we take a look at Bitfinex XRP Longs, the picture is clear, almost no one on the exchange is jumping to buy XRP. The amount of long positions has barely increased 9% since the crash on March 12 while shorts kept increasing until April 6.
What’s The Next Move for XRP?
Considering the low interest in XRP, is the digital asset going to be able to maintain the recent bullish momentum? Analysts are not sure but many technical indicators are still in favor of XRP. The lack of interest in XRP is also not a determinant factor as Bitcoin and Ethereum will still be able to drag XRP up if they continue going up.
Traders are paying close attention to the current $0.20 level, if it doesn’t hold, there is a good chance for XRP to start declining and perhaps even hit $0.18. If it holds and the bulls can see more continuation, the next resistance level is located at $0.22.