XRP Trading Volume Plunges 85% as Both Bulls and Bears Show Signs of Exhaustion

▲ XRP

XRP trading volume has recently plunged 85%, easing the extreme fear that had engulfed the market. However, concerns are growing that an energy-depleted sideways market could persist for an extended period.

According to crypto media outlet U.Today on Feb. 20 (local time), the XRP market has entered a stabilization phase after a sharp reset in trading volume following a panic-driven sell-off. However, stabilization does not necessarily mean a price recovery, as both buyers and sellers appear fatigued from market participation. The fact that XRP remains below key moving averages on the chart suggests that the overall trend is still weak.

After a sharp price decline, a brief rebound occurred, but without volume support, the upward momentum quickly faded. The current market structure shows shrinking candle sizes, slower price movements, and a narrowing trading range. In the absence of sustained participation, price action has lost strength, and volatility has been directly affected by the sharp drop in trading volume.

Strong price volatility typically requires emotional reactions from market participants or aggressive position-building, but such conditions are currently absent in the crypto market. The market is effectively in a neutral state, and the volume reset is preventing the possibility of sharp price swings. The broader crypto environment has reduced the risk of additional downside shocks while also draining the energy needed for an upward breakout.

The overall sentiment in the crypto market remains subdued. Amid criticism from a Federal Reserve chair who described cryptocurrencies as worthless, the likelihood of a bullish reversal for Shiba Inu (SHIB) appears slim, and there are skeptical views about whether Dogecoin (DOGE) can reclaim the $0.10 level. Until the market finds a new equilibrium, the most likely scenario is range-bound movement within a narrow band as momentum continues to compress.

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