According to the newest report from the firm, Ripple coin (XRP) experienced an m-on-m 1.151 percent increase in trading activity on the eToro investment trading platform. This arrives as the coin’s level reached USD0.92 on Coinbase at its monthly high and ended the month with a 283 percent increase of circa USD0.61.
Retail interest jump, as well as in trading activity
BTC was close to USD 19k for the first time since December 2017 when big marketplace cap cryptos like Ripple’s coin (XRP) began to increase in November.
Bitcoin’s optimistic marketplace sentiment probably paved the way for traders to try out bigger risk, short-term trades. The outcome was a big jump in volume as traders rallied to the cryptocurrencies.
Simon Peters, a marketplace analyst at eToro, said that the jump in Ripple’s monthly trading activity totally makes sense. He underlined that trading volume is usually followed by big price movements. Peters stated that BTC was a focus for a lot of people in the cryptocurrency community, but other cryptos are also making rounds as investors search for alternatives to diversify and make gains at other places. XRP rose from USD 0.240 at the beginning of November to USD 0.661 at its end.
Other probable moments are historic marketplace trends and a surge in retail interest. The crypto marketplace experienced a frenzy from retail investors in Jan. 2018. During that time, Ripple’s coin and ETH were the largest drivers of the cryptocurrency marketplace.
Actually, during November, the Google search for “XRP” has risen to its biggest level in 3 years, which suggests that retailers are coming back. The most probable reasons for this are Ripple breaking out of a multi-year downtrend and the expected less costly worth compared to BTC by the public at large.
The demand for Ripple also increased so rapidly that Coinbase saw a temporary server issue.
Altcoins following BTC in a bull marketplace
Altcoins usually rally and try o catch up when BTC stabilizes on the bull marketplace. This trend is due to the fact that traders frequently search for bigger-risk moves when the Bitcoin price is stabilizing.
Peters underlined that the digital gold saw an explosive price shift in the past month and had experienced small, if not predictable, drawbacks. For digital coins, this is the perfect period for earnings, as it makes them more enticing for retailers. Peters said that BTC exploded during the last month, going through resistance levels, with just small and pretty predictable retracements.
But also, digital currencies always have a risk of big crashes if a Bitcoin price correction occurs. During the bull marketplaces, digital coins will probably follow the price movements of Bitcoin, even if they are more unstable, putting them at risk of extreme short-term price fluctuations. However, the tech analysis displays an optimistic outlook for Ripple, whose price is now at its biggest level in more than 2 years.
The higher time frames give a better picture of where Ripple is located in the marketplace cycle. A multi-year downtrend has been broken to the upside, which means that dips are probable to be considered entry chances. Bearing this in mind, if Ripple’s coin holds USD 0.45 as support, continuation to USD 1 is a probable occurrence, especially if BTC prices hit new record levels.