XRP recently reached a record high of $3.666 after seven years, as it missed a top during the last bull market of 2021.
As Bitcoin steadies, capital often flows into top-tier tokens, resulting in short-term outperformance. This spurred recent advances in key altcoins, although signs of exhaustion are emerging.
The altcoin rally seems to be cooling as Bitcoin’s price falls, with analysts citing short-term fatigue despite a positive macroeconomic backdrop. Several leading altcoins that recently rallied have stalled, indicating exhaustion in the overall market.
Following a significant gain, XRP has plummeted, wiping out its gains from last week. According to CoinMarketCap data, the coin was recently trading for $3.18, an 8.44% drop in the last week.
Trading volume declines 42%
XRP price found support at a low of $2.96 and began rebounding. Since then, it has fluctuated in a range between $3 and $3.24.
XRP’s consolidation coincides with subdued trade volumes as investors anticipate the next major move. According to CoinMarketCap data, XRP’s 24-hour trading volume has plunged by 42% to $4.04 billion.
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Lower volume does not always indicate weakness, but it does indicate that traders may be staying on the sidelines as price action consolidates, implying that a significant breakout or breakdown is imminent.
Investors are now waiting to see if the U.S. Federal Reserve will cut interest rates at its upcoming meeting to gauge the broader market sentiment. Crypto and other risk-on assets benefit from low interest rates, which increase financial liquidity.
