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Month over month, XRP recorded a 1.151% increase in trading activity in November on the eToro trading platform, according to the company’s latest report. This is when the XRP price rose to $ 0.92 on Coinbase at its monthly peak and ended the month with a 283% gain at around $ 0.61.
The report reads:
Bitcoin, which remained the most traded cryptoasset on eToro in November, fell from $ 13,700 on November 1 to an all-time high of $ 19,895 on December 1, prompting the mainstream media to turn their attention back to the asset class.
Peak of retail interest, trading activity
Bitcoin (BTC) was approaching $ 19,000 for the first time since December 2017, when large market cap altcoins like XRP began to rise in November.
The upbeat market sentiment around Bitcoin has likely led traders to explore high-risk short-term trades. The result was a large increase in volume as traders rushed into altcoins.
Simon Peters, market analyst at eToro, explained that the increase in XRP trading activity month over month is entirely logical. He pointed out that trading volume typically accompanies large price movements. Peters said:
“Bitcoin has been the focal point for much of the crypto community, but altcoins are also causing a stir as investors seek alternative cryptocurrencies to diversify and make gains elsewhere. XRP’s rise in month-over-month trade is entirely logical in the context of the November price hike. The token went from $ 0.240 in early November to $ 0.661 at the end. “
Other likely factors include historical market trends and an increase in interest in retail. In January 2018, the altcoin market saw a retail investor-driven craze. At the time, XRP and Ether (ETH) were the major drivers of the altcoin market rally.
In fact, in the past month, Google’s search term “XRP” has risen to its highest level in three years, suggesting that retail traders were returning. The most likely reasons for this include XRP overcoming a multi-year downtrend and the perceived value of “cheaper” than Bitcoin in the public eye.
As Cointelegraph reported, demand for XRP also increased so rapidly that Coinbase suffered a temporary server outage to the ire of its users.
Altcoins following Bitcoin’s lead in a bull market
Altcoins tend to catch up and catch up when Bitcoin stabilizes during a bull market. This trend occurs because traders often look for high-risk games when the BTC price is consolidating.
Peters noted that Bitcoin saw explosive price movement in November and saw minor, if not predictable, withdrawals. For altcoins, this is an ideal period for gains as it makes them more attractive to retail traders. Peters added:
“Bitcoin exploded in November, breaking above the resistance level after the resistance level, with only minor and relatively predictable retracements.
On the other hand, altcoins are always at risk of a major crash in the event of a BTC price correction. During bull markets, altcoins are likely to follow BTC’s price movement albeit with greater volatility, which puts altcoins at risk of extreme short-term price swings.
However, technical analysis shows a positive outlook for XRP, the price of which is now at the highest levels in over two years.
“The higher time frames give a clearer indication of where XRP is in the market cycle,” noted trader Michael van de Poppe in his latest XRP price analysis. “A multi-year downtrend has been interrupted to the upside, which means that the declines will likely be seen as entry opportunities for traders.”
With this in mind, if XRP holds $ 0.45 as support, it is likely to continue towards $ 1.00, particularly if Bitcoin’s price hits a new all-time high.
