Ripple witnessed an impressive rally over the past day, but might soon face resistance due to short-term profit-taking.
Ripple (XRP) is up by 18% in the past 24 hours and is trading at $0.605 at the time of writing. The asset briefly reached an intraday high of $0.64 at 21:30 UTC on Aug. 7 as its daily trading volume rallied 210%, surpassing the $5 billion mark.
XRP’s market cap is currently sitting at $33.8 billion, closing the gap with USDC’s $34.5 million.
According to data provided by Santiment, the number of whale transactions consisting of at least $100,000 worth of XRP rose from 869 to 935 unique transactions over the past day. The increased trading volume and whale activity could hint at potential high price volatility for the seventh-largest crypto asset.
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Data from the market intelligence platform shows that the XRP Relative Strength Index surged from 41 to 57. The RSI indicator shows that XRP is slightly overbought at this price point.
Moreover, XRP’s total supply in profit increased from 70.46 billion on Aug. 5, when its price fell to $0.43, to 77.49 billion at the reporting time. It’s highly expected that short-term traders would try to take profits as the crypto market is still moving in a highly volatile zone.
In the last week of July, investors were discussing a mega breakout for the XRP price which soon came to an end with the geopolitical tensions in the Middle East and the fear of recession in the United States.
