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XRP, the cryptocurrency and native token of XRP Ledger, has recorded significant price variations in the red zone. However, it bounced off a critical support level of $0.505, climbing from $0.5048 to $0.5230 in early Friday trading before experiencing corrections.
XRP volume could drive growth
Despite XRP’s current price volatility, a more lasting rebound appears imminent, given other market forces. Within the past 24 hours, XRP’s market volume has surged by 42.94% to $1.27 billion, indicating investors’ interest in the asset.
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Increasing investor confidence and bullish market sentiment surrounding the asset could support a rebound. The bullish display of XRP in market volume could push its price from the red into the green zone.
XRP has struggled to shake off bearish sentiment in the last seven days and looked to test the $0.52 price level. Despite its low price, other metrics like Open Interest have also continued to soar, suggesting investors’ confidence in the asset.
Investors might use XRP’s low price to stock up and sell at a profit when the anticipated rebound happens.
Broader industry developments could catalyze growth
Additionally, some analysts consider XRP due for a price rebound as the asset has been in a long phase of tight consolidation.
Three years have passed since 2021, when XRP hit $1.96, and a breakout might just occur. This expectation is likely fueling the surge in market demand ahead of an anticipated price spike.
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Meanwhile, other broader industry events could impact XRP’s price outlook. For instance, the likelihood of a spot ETF product could spark renewed interest and push the price up. As reported by U.Today, the U.S. Securities and Exchange Commission has officially acknowledged Grayscale’s filing with the regulatory body. This sets the timeline for approval in motion.
Data shows XRP exchanging hands for $0.5182 amid a 1.08% drop in the last 24 hours.