The XRP price has risen by 0.5% in the past hour, with its jump to $0.502420 coming as the altcoin's 24-hour trading volume almost doubles that of its nearest rival in terms of market cap, BNB.
XRP is now 0.5% down in a week but 4.5% up in the last 14 days, with the token also having gained by 47.7% since the beginning of the year.
And while the market-wide difficulties of the past few weeks have meant that XRP has lost ground, the fact that it continues to command high trading volumes would suggest that it's in a good position to recover strongly when the mood becomes more bullish.
XRP's gain in the past hour raises the possibility that it's at the beginning of a long-overdue rebound, with its indicators having been in an oversold position for over a month now.
Its relative strength index (purple) is climbing towards 50 after being close to 30 at the start of the month, with its improvement suggesting that buying momentum is beginning to return to the token.
In parallel, the coin's 30-day moving average (yellow) has now been below its 200-day average (blue) for a couple of weeks, increasing the probability that a recovery rally will be coming soon.
Another sign of the improving picture is XRP's support level (green) which has been rising since September 11, implying that its earlier declines have bottomed out and that now is a very good time to buy the token.
XRP itself can't really be blamed for its recent falls, with the cryptocurrency market as a whole being dragged down by a mixture of fears surrounding another US government shutdown, as well as by concerns surrounding the Chinese economy.
Indeed, even the S&P 500 has fallen by about 5% since the beginning of September, an indicator of the general risk aversion currentlyRead more on cryptonews.com