Low trading volume... XRP ETF, what's the real reason for the 'quiet rise'?

▲ XRP (XRP, ETF/ChatGPT generated image

XRP-related exchange-traded funds (ETFs) have shown an upward price trend despite sluggish trading volume, signaling a shift in internal market supply and demand.

According to crypto-focused media outlet The Crypto Basic on April 11 (local time), the XRP ETF recorded a 'green' trend with rising prices even though trading volume had not significantly increased recently. This leads to the interpretation that structural buying pressure is at play, rather than just a sudden surge in short-term demand.

The market is paying attention to the rally unaccompanied by trading volume. While price increases are typically accompanied by increased trading volume, this trend showed prices rising even with limited trading, and sell orders being rapidly absorbed. This is interpreted as a signal that supply within the market is decreasing.

Some analysts have suggested that this movement could be a quiet accumulation phase driven by institutional investors. The pattern of prices gradually rising without significant changes in trading volume has been observed repeatedly in the early stages of bull markets for major assets in the past.

Furthermore, the simultaneous appearance of XRP's price uptrend and the ETF market's reaction is also considered a positive factor. This indicates that indirect investment demand through ETFs is gradually being reflected in the price, and it is interpreted in conjunction with the trend of restoring confidence within the market.

Consequently, the 'low-volume rally' of the XRP ETF is being perceived as an indicator suggesting a potential shift in the mid- to long-term supply and demand structure rather than short-term volatility. Market participants are focusing on price movements rather than trading volume to assess the possibility of further increases.

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