On-chain data shows the trading volumes of XRP and Polygon have hit monthly highs as investors are displaying FOMO towards the assets.
XRP, Polygon See Volume Spike Similar To Bitcoin’s Surge A Few Days Back
According to data from the on-chain analytics firm Santiment, XRP & MATIC have seen high volumes recently. The “trading volume” here refers to the total amount of any cryptocurrency that’s being transacted on the different exchanges in the sector every day.
When the value of this metric is high, it means that the asset in question is being moved around a lot on the exchanges. Such a trend implies that traders are actively participating in the market right now.
On the other hand, low values suggest the interest in the cryptocurrency may be low at the moment as not much trading activity related to it is happening on the platforms.
Now, here is a chart that shows 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 displayed in the above graph, the Bitcoin trading volume had become pretty high a few days back when the asset’s price had surged toward the $28,500 mark.
This spike in the volume had come with a delay, however, as its peak had occurred after the cryptocurrency had already started on its pullback. This could be a sign that once investors saw the rally, they felt like they had to FOMO in, so they quickly made some trades, but many of these investors had arrived late to the scene, hence why the spike had come later.
The volume would have also been fueled by the panic sellers who bought at the top but sold as soon as they saw that the rally was already starting to cool down.
During the past couple of days, XRP and Polygon have also seen some recovery surges (although the rises haven’t been anything too impressive) and the trading volume has also shown similar spikes for these cryptocurrencies as well.
At the peak of this latest surge, the volume of these cryptocurrencies had managed to hit its highest level in about a month. “FOMO is high right now,” notes Santiment.
It would appear that just like with BTC, investors had started jumping on these cryptocurrencies once they saw the rally. Those falling for FOMO, however, would have once again faced disappointment, as both XRP and MATIC have already retraced their latest recovery attempts.
If the trading volume continues to stay high even after the pullback, though, then 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.
In its latest recovery rally, XRP had managed to rise near the $0.55 mark, but with the pullback since then, the cryptocurrency has dropped toward the $0.52 level.
XRP has declined since its rise two days ago | Source: XRPUSD on TradingView
Featured image from Kanchanara on Unsplash.com, charts from TradingView.com, Santiment.net