XRP saw a slight increase of approximately 0.6% on Sunday, trading around the $1.42 level. The digital asset experienced a 24-hour range between $1.41 and $1.47, with trading volume reaching roughly $2.6 billion.
On-Chain Activity Surges
Analytics firm Santiment reported a notable uptick in on-chain movement. The data showed 1,389 large transactions exceeding $100,000 on the XRP Ledger, marking the highest count in four months. Concurrently, a surge in new unique addresses was observed, with 78,727 created within an eight-hour window—a six-month peak.
The broader cryptocurrency market also advanced. Bitcoin gained 2.8% to trade near $70,632, while Ether increased by 2.5% to approximately $2,090.
Liquidity Concerns Fuel Volatility
Market analysts highlight that reduced liquidity is amplifying price swings across crypto assets. Kaiko research indicated Bitcoin's average 1% market depth sits around $5 million, a measure of order book liquidity. This shallow depth can lead to sharper price movements with relatively small trades. Some strategists, including from Jefferies, warn that volatility may persist without a clear price floor established.
Macroeconomic Focus This Week
Trader attention is shifting to upcoming U.S. economic releases for clues on monetary policy. Key data includes Retail Sales on Tuesday, the January Jobs Report on Wednesday, and Consumer Price Index (CPI) inflation figures on Friday. Several Federal Reserve officials are also scheduled to speak.
A hotter-than-expected inflation reading could quickly dampen expectations for interest rate cuts, putting pressure on risk assets like cryptocurrencies. Conversely, softer data might fuel a relief rally. However, with liquidity conditions remaining thin, even minor catalysts could trigger significant price moves for tokens like XRP.
