XRP Trading Volume on Coinbase Skyrockets 9,640% in 24 Hours as Market Speculates on Potential Depository Receipts

XRP trading volume on the exchange increased to $438 million as traders capitalized on recent price movements. Trading volumes often indicate traders' positioning.

Coinbase XRP trading volume has surged by an impressive 9,640% in just 24 hours, reaching a high of $438 million. This surge is likely due to traders responding to the recent price movements of XRP.

According to CoinGlass data, XRP trading volume on the cryptocurrency exchange soared to $438 million on Friday, as traders capitalized on the recent price movements of the embattled cryptocurrency.

Trading volumes can often indicate traders' positioning in the market. In this case, traders may be aiming to profit from the recent market volatility. They may also be entering or exiting positions in response to the latest developments in the market.

As reported by Fox Business correspondent Eleanor Terett, XRP depository receipts could be available for purchase in the near future.

These XRP depository receipts, similar to regular American depository receipts that represent shares of foreign companies, would indicate ownership of the underlying XRP without requiring investors to buy the asset directly through a cryptocurrency exchange.

The benefits are similar to those of an ETF, allowing investors to gain exposure to an asset without having to purchase it directly through a foreign exchange or cryptocurrency exchange. In essence, it provides another avenue for TradFi to intersect with DeFi. The XRP DRs will be held by Anchorage, a federally chartered bank that is overseen by the USOCC.

On Thursday, Cboe filed several 19b-4 applications to list and trade the proposed XRP ETFs from Bitwise, 21Shares, Canary Capital, and WisdomTree.

XRP price action

The broader cryptocurrency market was mostly down on Saturday after a brief rally on Friday following the release of January jobs data. The crypto market then shed its gains as investors reacted to the mixed U.S. jobs data, which showed that unemployment fell but job growth slowed in the world's largest economy.

XRP was down 4.49% in 24 hours, trading at $2.42 and having hit highs of $2.54 in Friday's session. It continues to trade below the key daily SMA 50 at $2.62. XRP, the fourth largest cryptocurrency by market capitalization, is down 19% for the week.

If the price rebounds, the first task for the bulls would be to flip the key daily SMA 50 at $2.62, which it once held as support but has since become resistance, back into support. If this happens, XRP would then aim for $3 once again.

Another possibility is for XRP to remain in consolidation, sandwiched between its daily moving averages 50 and 200 at $2.62 and $1.32, respectively. On the other hand, if the price continues to fall, XRP could find support around $2.