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October 03, 2018 @ 11:28 +03:00
Subsequent to the release of a major partnership with $80 billion banking giant Banco Santander, the price of Ripple (XRP) has declined by more than 8 percent. In the past 24 hours, the valuation of the cryptocurrency market dropped by around $9 billion, as Bitcoin dropped below the $6,500 mark for the first time in the past seven days, recording a 2 percent decline in value.
Yesterday, on October 2, CCN reported that the low volume of Bitcoin is a concern for traders and it could negatively impact the short-term trend of Bitcoin. “The volume of Bitcoin remains fairly low at around $4 billion, down more than 30 percent since mid-September. On Coincap, the cryptocurrency market data provider of popular digital asset trading platform ShapeShift, which eliminates exchanges suspected of having false volumes, the daily trading volume of Bitcoin is estimated to be around $2.6 billion,” the report of CCN read.
It would have been possible for the dominant cryptocurrency to engage in a short-term upside movement if its volume had rebounded by around 15 to 20 percent. But, throughout the past 24 hours, the daily trading volume of Bitcoin remained at $4 billion on CoinMarketCap and $2.77 billion on Coincap.io. The volume of Bitcoin recorded a slight gain of around 1 percent, which had no notable effect on the short-term trend of the crypto market. The sudden drop in the price of XRP after Swell 2018 conference also contributed to the downtrend of major cryptocurrencies.
The decline in the momentum of XRP and most major cryptocurrencies including Ethereum (ETH), Bitcoin Cash (BCH) and Stellar (XLM) will likely prevent the market from initiating a major short-term rally in the next 24 to 48 hours. At this phase in the market, it is important for cryptocurrencies to demonstrate a gradual increase in volume to initiate a corrective rally in the days to come.