XRP Price Plummeted as Volume Peaked

XRP retreated after a recent string of gains, causing its price to surge and peak at $0.60. It is worth noting that there has been a significant increase in trading volume, and over the past 24 hours, there have been notable fluctuations in total supply and profits.

XRP drops more than 8%

Source: Trading View

During March 5, XRP experienced a major price drop, falling more than 8% from its start at $0.64 to around $0.59. This is the largest correction in over six months, highlighted by the Relative Strength Index (RSI) taking XRP out of overbought territory.

However, at the time of writing, XRP price has recovered, increasing more than 3.8% and returning to the price range of 0.6 USD, trading around 0.61 USD. The RSI, after falling below the 60 level during the bearish phase, is now stabilizing near the 60 level.

XRP volume spikes to 6-month high

Source: Santiment

Another notable point is that XRP’s trading volume has skyrocketed to its highest level in the last 6 months. This increase is demonstrated by analysis of Santiment’s volume metrics, which show sharp ups and downs over several weeks, but with a consistent upward trend over the past 48 hours.

On March 5, XRP trading volume reached approximately $4.02 billion. In the latest update, this value has increased to around 4.3 billion USD, with indicators on the chart even reaching 4.9 billion USD.

This increase shows that during the March 5 sale, volume was mainly influenced by sellers. However, in the latest analysis, control over volume has shifted to the hands of buyers, contributing to an increase in value as trading volume increases.

MVRV and profit supply indicate profitability

Source: Santiment

MVRV and yield supply ratio represent the profitability of XRP. Before the price cut on March 5, the total profit supply reached nearly 90%. However, after the price adjustment, this ratio has dropped to about 84% at the time of writing.

Related: XRP Poised for a Significant Price Surge

The yield supply chart shows about 84 billion XRP in profit, compared to nearly 90 billion before the halving. Examining the 30-day MVRV ratio also shows volatility, from about 11% before March 4, falling to about 1% after the price drop. However, at the time of writing, it has rebounded by around 5%, highlighting just how remarkable and quick the market’s reaction to recent price movements has been.