XRP Holders Remain Hopeful as Market Stabilizes
XRP is maintaining around $2.00, sparking speculation about a potential rally as market conditions shift.
Ripple’s XRP, like the broader cryptocurrency market, has faced significant challenges lately, but there are reasons for optimism. Data from well-known analyst CW indicates a decrease in XRP’s spot volume, which typically suggests a bottoming pattern and could lead to a price recovery.
The $XRP spot volume bubble map shows the current state of cooling.
Generally, a cooling phase indicates an oversold condition, often marking the bottom. Continuous listings of XRP ETFs are contributing to increased global liquidity. This, in combination with the ongoing ETF listings, suggests positive movement for $XRP.
This bubble map supports previous findings that leveraged trading significantly affected the market downturn observed since early October. For XRP especially, the map reveals that overheating in spot volumes (indicated by red dots) typically precedes extended correction phases. Recent observations show that red dots have not appeared frequently since the late 2024/early 2025 surge to $3.40.
Consequently, CW concludes that the current spot volume levels put XRP in a “state of cooling,” which historically signifies oversold market conditions, typically occurring during price bottoms.
CW further suggests this cooling phase won’t persist long as new XRP ETFs debut weekly with impressive inflows. In fact, recent performance of spot Ripple funds has surpassed that of Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) since the first ETF was introduced to US markets mid-November.
Additional Insights:
- Global liquidity is on the rise, which, when paired with the influx of funds into XRP ETFs, could lead to significant gains for the token.
- Currently, XRP hovers just above the crucial $2.00 support level and is still showing a negative trend year over year, despite Ripple achieving its best year yet.
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