XRP Gains as Inflation Hedging Boosts Trading Volume
Ripple (XRP) gained about 2% in a fresh rally, trading at $1.37 as investors hedged against the U.S. consumer price index. Inflation drove trading volume higher on Monday.
XRP peaked at $2.40 last month before experiencing significant selloffs amid a move into safe-haven assets amid the US-Iran escalations.
Despite this positive capital rotation and a volume surge on Monday, XRP still underperformed the broader market rally, with Bitcoin gaining 3.19%. XRP is expected to bounce with the fresh rally, and analysts are targeting $2 before Q1 close.
In separate predictions, analysts anticipate U.S. inflation to rise sharply as the Middle East conflict triggers an energy crisis with Brent and WTI trading above $100 per barrel.
Inflation data to be released this week will not capture the global energy crisis and internal economic issues in America, analysts said, adding that hedging is a precautionary move in the alternative investment market.
XRP and other altcoins are trading in the green, with price driven by capital flowing into crypto amid a rising total market cap, and technical momentum providing confirmation.
Trading data showed that the total crypto market cap increased by 2.89% over 24 hours, with Bitcoin leading the rally. XRP’s 2% move, while positive, underperformed this broader surge.
XRP is trading above its 7-day average of $1.36 and 30-day average of $1.35, signalling short-term strength, according to technical traders and some crypto analysts. Its Relative Strength Index (RSI) at 56 suggests room for further upside before becoming overbought.
Its 24-hour trading volume surged 65% to $2.39 billion, confirming the price move. The price gain is supported by improved technical structure and higher participation.
Recent coverage reports that XRP spot trading volume rose about 70% in 24 hours to roughly 2.2 billion dollars, with derivatives volume up 67% to 3.22 billion dollars, according to a market update based on CoinMarketCap and CoinGlass data.
Despite this, XRP’s price is only modestly higher, around $1.3, and has been roughly negative over the past week. That combination of flat price and rising turnover suggests positioning and hedging rather than a clean trend.
The broader market has also been jumpy, with around $ 360 million in total crypto liquidations in a single day, split between longs and shorts, as volatility picked up heading into the data week.
Institutional flows have been cautious. XRP ETFs saw about $30.3 million in outflows over the week, even as Bitcoin ETFs attracted large inflows, per a fund flow roundup.
Rising derivatives volume alongside ETF outflows increases the odds that a chunk of current activity is leveraged short-term trading rather than long-only accumulation. TAO Gains 9.5% as Crypto Markets Attract AI Agents
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