Software engineer Vincent Van Code has raised concerns that low trading volume for XRP questions the sustainability of its current price rally.
Market Overview of XRP
XRP is trading in the low $3 range, indicating market interest. The reported 24-hour turnover sits between $5.6 billion and $6.5 billion according to major crypto data aggregators. Despite these figures, analysts warn that high price figures can obscure the actual concentration of trades.
Reasons for Low Trading Volume
Van Code emphasized that thin liquidity means small orders can significantly impact prices. Shallow order books require less genuine buying power to alter prices, creating conditions ripe for speculation and market manipulation. He cautioned that tactics such as wash trading, spoofing, and pump-and-dump schemes can distort prices when real demand is limited.
Historical Context and Projections
Historically, previous sustained XRP rallies were supported by daily volumes exceeding $10 billion and growing liquidity across multiple venues. Without similar breadth of participation, Van Code believes the current breakout is technically valid but fundamentally unproven. For lasting momentum, XRP requires deeper order books and increased on-chain activity.
Vincent Van Code's analysis highlights that while XRP's rise might excite holders, the rally's foundations remain fragile. Without sufficient liquidity, any rally could be followed by a swift decline.
