The drop in 24-hour volume is severe as prices fall

A pair of red hourly candles emerged in the middle of Monday’s trading day and began to push Ethereum, Dogecoin, and Avalanche into the red for the weekly period ending Monday.

But no top ten losses were as steep as XRP’s as it turned late on the US East Coast on Monday. By the time New York stock markets closed, Ripple tokens were down more than 7% in the 7D period on 24-hour crypto exchanges.

XRP Daily Volume Down 93% in December

A decisive factor in the decline in the price of XRP on Monday was a massive drop in trading volume on popular cryptocurrency exchanges such as Binance, Kraken and KuCoin.

XRP’s daily trading volume on these platforms dropped to $2.5 billion as of Sunday evening from $37.5 billion at the start of December just under a month ago. Note that XRP was the best gainer among its peers in November and December following Donald Trump’s successful re-election to the White House on November 5.

The price of XRP was so over-indexed above its peers during this period that it led the cross-border liquidation tokens of the year. From January 1 to December 25, XRP returned an annual green candle of 247% to Bitcoin’s 126%, Solana’s 75%, and Ethereum’s 49%.

Therefore, altcoin traders might have expected Ripple’s price and volume to decline based on the mean reversion to the mean trend of these digital assets. Other crypto assets like Bitcoin and Ethereum fell in trading volume, but not as much as Ripple this month.

Bullish Sign for XRP Price Soon?

This is interesting because the price of Ripple rose by 10% in December without volume support. This means that when the volume comes back, it could really be launched. Meanwhile, the 7-day price drop creates a window of opportunity for altcoin traders to make an entry above Ripple’s December prices.

Crypto X analyst Zach Rector describes XRP as “incredibly undervalued.”

Incredibly Undervalued Ripple! #XRP pic.twitter.com/IncujYdMO4

— Zach Rector (@ZachRector7) December 29, 2024

Fibonacci and Elliot Wave analysis shows a bullish reversal in play to start January, with a bearish wedge from December 1st if XRP price does not break below the key support at $2.

Legendary technical chart analyst Peter Brandt is targeting $2.71 for XRP soon. Also, popular X crypto analyst MikyBull Crypto expects a $4 Ripple in the near future.

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