Rise in volume from lows suggests XRP is finally pumping

XRP continues to disappoint its investors and community as it has been unable to endure what looked like a rally over the past year. Previously, every short-lived rally was sold by Ripple itself, further undoing any hope for positive momentum.

But now a massive spike in volume after XRP exploded from recent lows suggests that the third-placed cryptocurrency by market cap will finally start pumping and recouping the gains it lost during the bear market.

The increasing trading volume indicates that XRP may be ready to pump

Earlier this year, XRP was among the altcoins that broke out of two-year downtrend lines, only to be heavily rebuffed among them again by the coronavirus-fueled sell-off on Black Thursday last month.

The sharp collapse caused XRP to drop from almost 30 cents per token to just 10 cents, setting a new bear market low for the third-tier cryptocurrency by market capitalization.

Related reading | XRP buy signals stacking in multiple time frames can trigger Ripple’s recovery

Huge sales volume helped the down move as stop losses were hit and investors panicked selling fearing the worst. However, a re-test of those lows recently made on the XRPBTC trading pair also resulted in an explosion in buying volume, which could suggest the bottom has been hit and XRP could soon rise, according to a crypto analyst.

Wouldn’t be surprised if $ XRP finally pumps. Some good volume flowed from the lows after absorbing high sales volumes. If alts are strong, watch out for them to follow $ ETH pic.twitter.com/DySoyW9qZl

– ₿ Pentoshi (@ Pentosh1) April 23, 2020

Will a ripple effect kick start a new altcoins season?

The analyst also concludes that this could be a signal that altcoins are showing strength and that Ethereum may follow XRP and outperform BTC in what crypto traders call altcoin season.

Over several periods of time, important buy signals have been triggered in the XRPBTC trading pair, further supporting the theory that XRP will soon experience a massive pump and bring alts back to life.

Related reading | XRP regains the downtrendline after a false breakout, what’s next?

The theory that an alternative season is just around the corner is further confirmed by the breakup of Bitcoin dominance from a long-term trend line. Now that the trendline has been broken and a bearish retest has been confirmed, BTC dominance could soon decline, giving altcoins room again to shine.

The old season tends to lead to life-changing wealth, and after more than a full year of consolidating at lows, the asset class will either soon rise again or eventually fall to zero. Some analysts advise investors to be ready to go down with the altcoin ship, while others accumulate at low prices in anticipation of the premium.

But what actually comes next is a guess. Will the recession destroy this asset class or will inflation skyrocket fixed assets like XRP?

Selected image from Pixabay

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