XRP Could Be The Altcoin To Recover Quickly, CryptoQuant Analyst Explains Why

Keshav Verma

6 months ago

2 mins read

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XRP has crashed alongside the rest of the cryptocurrency market, but this analyst thinks the asset could be the one to find a quick recovery.

XRP Has Been The Top Traded Altcoin On Binance This Month

In a new CryptoQuant Quicktake post, community analyst Maartunn has talked about how the altcoins currently compare against each other based on their monthly Binance futures trading volumes.

The “trading volume” here refers to an indicator that keeps track of the total amount of a given asset that’s becoming involved in trading on a centralized exchange. In the context of the current topic, the platform is Binance.

Below is the chart shared by the analyst that shows the trend in the monthly value of this metric for various top altcoins in the sector.

XRP Binance Volume — The value of the metric appears to have been the highest for XRP recently | Source: CryptoQuant

From the graph, it’s apparent that during most months of this year, Solana (SOL) dominated the trading volume on the exchange. A shift has occurred in the market during the past couple of months, however, as SOL has lost its number one spot.

Last month, it was Dogecoin (DOGE) that managed to surpass the asset to become the number one altcoin in this metric, while this month, XRP has overtaken both of them.

So far, XRP has seen trading volume amounting to $116.6 billion on the exchange. This value is also certain to go even higher, as this month of December still has one-third of the way to go.

While Binance doesn’t make up for the entire sector, the exchange is still the largest in terms of volume, so the trend on there can be representative of the wider market. “It’s important to track the top-traded coins on Binance, as they should be your main focus when trading altcoins,” notes Maartunn.

During the last couple of days, the entire cryptocurrency sector has witnessed a crash. Based on the monthly Binance volume, though, the analyst says, “XRP seems to be one that could recover quickly.”

In some other news, the market plummet in the last 24 hours has meant that the derivatives side of the cryptocurrency sector has registered a massive amount of liquidations, according to data from CoinGlass.

Out of the $1.40 billion liquidations that have occurred inside this window, XRP-related contracts seem to have contributed for around $42 million, as the below heatmap shows.

XRP Liquidations — The share of the total liquidations occupied by each symbol | Source: CoinGlass

Interestingly, Dogecoin and Solana appear to have seen a larger flush than XRP. This may be down to the fact that both of these assets have also witnessed a deeper price drawdown.

XRP Price

During the latest crash, XRP briefly slipped under the $2.0 level, but it seems the coin has managed to recover back above the mark for now as its price is trading around $2.1.

Featured image from Dall-E, CoinGlass.com, CryptoQuant.com, chart from TradingView.com

Keshav Verma

Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.

Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.

In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.

Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.

Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..

Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.

Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.

As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.

Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.

Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.

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