With a 37% decline in trading volume, XRP is clearly showing signs of exhaustion, following weeks of euphoric momentum. As of July 27, the asset has retreated to $3.18 from a local high of about $3.70, and its momentum has been noticeably waning.

XRP Holds Up

The price chart shows a pattern of rapid upward movement that is followed by a multi-day sharp correction. But the recent recovery from about $3.10 indicates that XRP is still holding onto the bullish structure, albeit with less vigor. With the Relative Strength Index (RSI) hovering around 62 right now, the market is cooling off from earlier overbought levels. With the 200-day EMA well below the current price and short-term EMAs, particularly the 21-day, still supporting the asset, an intact macro uptrend is confirmed.

The situation is more complicated on the volume side. Daily trading volume has declined from a peak of over $50 million to just $31 million, a 37% decline. Context is important even though this appears concerning: The drop occurs during a weekend session, which is typically associated with lower liquidity and thinner order books.

Weekends have historically allowed cryptocurrency markets to relax rather than being a sign of prolonged bearishness. More significantly, on-chain data indicates a slight exit of capital from XRP as well as the larger cryptocurrency market. It is clear that this retrace is market-wide rather than XRP-specific because the overall market volume is down across majors like BTC and ETH as well.

It is not necessarily a bear market when activity temporarily declines. It is normal and healthy to cool down after an intense rally. XRP may continue if it can sustain support above the psychological $3.00 level and consolidate with rising volume in the middle of the week. The trajectory of XRP for the time being depends on incoming liquidity and whether bulls return after the weekend. However, the 37% volume decline is probably just a pause and shouldn't be interpreted as a trend reversal.