XRP Trading Volume Drops 24% Amid Market Uncertainty

XRP has experienced a sharp 24% drop in trading volume over the past 24 hours, falling to $1.78 billion, according to CoinMarketCap. This decline marks a significant shift from its recent average volume range of $3–$5 billion, signaling waning interest among traders.

The exact cause of the decline is unclear, but market analysts point to a combination of profit-taking and broader bearish sentiment across the crypto sector. As several assets enter the red, investors appear to be adopting a cautious, wait-and-see approach ahead of the upcoming Federal Reserve policy meeting scheduled for May 6–7. Expectations are that the Fed will hold interest rates steady, with a potential rate cut projected for June and more possible by year-end.

XRP’s price has been consolidating, contributing to the drop in trading activity. Currently trading at $2.20, down 0.22% in the past day, XRP continues to hover near its 50-day simple moving average (SMA) of $2.187. This level remains a critical support zone. A close below it could lead to a retest of the $2 mark and potentially a drop toward $1.61 if bearish momentum intensifies.

However, the technical indicators remain neutral. The Relative Strength Index (RSI) sits slightly above the midpoint, offering no strong bias. A bullish breakout above $2.60 could trigger a rally to $3, but buyers need to show stronger conviction.

While the recent volume crash has raised questions about XRP’s short-term outlook, traders are closely watching macroeconomic events and technical levels for cues. The next few days could prove pivotal for XRP’s trajectory in May.