On-chain data shows that XRP and Polygon trading volumes have hit monthly highs as investors exhibit FOMO towards the assets.
XRP and Polygon are seeing volume spikes similar to Bitcoin’s surge a few days ago
This is evident from data from the on-chain analysis company Santiment, XRP & MATIC have been seeing high volumes lately. The “trading volume” here refers to the total amount of each cryptocurrency traded each day on the various exchanges in the industry.
When the value of this measure is high, it means that the asset in question moves a lot on the stock exchanges. Such a trend implies that traders are currently actively participating in the market.
On the other hand, low values suggest that interest in the cryptocurrency may be low at the moment as there is not much trading activity related to it taking place on the platforms.
Here is a chart showing the trend in this indicator for XRP, Polygon and Bitcoin over the past month or so:
Looks like the value of the metric has been quite high in recent days | Source: Santiment on X
As shown in the chart above, Bitcoin trading volume had become quite high a few days ago, when the asset’s price had surged towards $28,500.
However, this spike in volume came with a delay, as the spike occurred after the cryptocurrency had already begun its pullback. This could be a sign that once investors saw the rally, they felt like they had to engage in FOMO, so they quickly made some trades, but many of these investors were late on the scene, which is why the spike came later.
The volume would also have been fueled by panic sellers who bought at the top but sold as soon as they saw the rally already starting to cool.
In recent days, XRP and Polygon have also seen some recovery gains (although the gains haven’t been too impressive) and trading volume has also shown similar spikes for these cryptocurrencies.
At the peak of this latest surge, the volume of these cryptocurrencies had managed to reach the highest level in about a month. “FOMO is high right now,” Santiment notes.
It seems that, like BTC, investors jumped on these cryptocurrencies as soon as they saw the rally. However, those who fell for FOMO would have been disappointed again as both XRP and MATIC have already followed their latest recovery attempts.
If trading volume remains high even after the pullback, it would be a positive sign for the prices of these altcoins, as it would mean that there is still significant demand for them at these lower price levels.
XRP price
During the last recovery rally, XRP had managed to rise near $0.55, but with the pullback since then, the cryptocurrency has fallen to the $0.52 level.
XRP has declined since its rise two days ago | Source: XRPUSD on TradingView
Featured image of Kanchanara on Unsplash.com, charts from TradingView.com, Santiment.net
