month for month XRP saw trading activity jump 1,151% in November, the largest of any cryptocurrency. This is because the price of XRP on Coinbase rose from its monthly high to $ 0.92 and closed the month by 283% to around $ 0.61.
Increased retail interest, business activity
Bitcoin (BTC) approached $ 19,000 for the first time since December 2017, when large cap altcoins like XRP began to rise in November.
The bullish market sentiment surrounding Bitcoin has likely prompted traders to investigate riskier short-term trades. The result was a huge increase in volume as dealers rushed to buy altcoins.
Simon Peters, a market analyst at eToro, explained this The increase in trading activity of XRP from month to month is perfectly logical. He emphasized that trading volume is often associated with large price movements. Peters said:
“Bitcoin has been the focal point for much of the crypto community, but altcoins are also making waves as investors look to alternative crypto assets to diversify and profit elsewhere. The increase in XRP in monthly trading is completely logical in the context of the price increase in November. The token rose from $ 0.240 in early November to $ 0.661 at the end. “
Other likely factors are historical market trends and an increase in retail interest. In January 2018 There was a mania in the altcoin market that was fueled by private investors. At the time, XRP and Ether (ETH) were the main drivers of the altcoin market rally.
Indeed for the past month The Google search term “XRP” hit its highest level in three years, suggesting retailers are making a comeback. The most likely reasons for this are XRP’s breakout of a multi-year downward trend and the publicly perceived “cheaper” value compared to Bitcoin.
As Cointelegraph reported, the demand for XRP also grew so rapidly that Coinbase suffered a temporary server downtime to the annoyance of its users.
Altcoins follow Bitcoin in a bull market
Altcoins tend to rally and catch up when Bitcoin stabilizes during a bull market. This trend occurs because traders often look to riskier games as the price of BTC consolidates.
Peters noted that Bitcoin saw explosive price movement in November, posting minor, if unpredictable, declines. For altcoins, this is an ideal profit period as they are more attractive to retailers.. Peters added:
“Bitcoin exploded in November, breaking the resistance level after the resistance level with only minor and relatively predictable setbacks.”
On the other hand, with altcoins there is always the risk of a sharp decline in the event of a BTC price correction. During the bull markets Altcoins are likely to follow the price movement of BTC, albeit with greater volatility, exposing altcoins to the risk of extreme short-term price fluctuations.
However, technical analysis shows good prospects for XRP, the price of which is now at its highest level in more than two years.
“Higher time frames give a clearer indication of where XRP is in the market cycle.”noted the dealer Michael van de Poppe in his latest XRP price analysis. “A multi-year downtrend has been broken up, which means declines are likely to be viewed as entry points for traders.”
With that in mind, if XRP has $ 0.45 as support, it is likely to continue moving towards $ 1.00, especially if Bitcoin’s price hits a new all-time high.