XRP Volumes Zoom Ahead of Bitcoin, Dogecoin in South Korea. What’s Next?

XRP Trading Volumes Surge in South Korea, Signaling Increased Volatility

XRP trading volumes on South Korea's largest crypto exchanges have surpassed those of Bitcoin (BTC) and Ethereum (ETH), indicating heightened interest that often heralds price volatility.

On UpBit, Bithumb, and Korbit, the country's top exchanges by volume and user base, total XRP trading volume against the won reached over $800 million in the past 24 hours.

XRP accounted for $200 million in volume on Bithumb and $600 million on UpBit, while Bitcoin trading volumes were less than half of those on both exchanges. Demand for other assets like Dogecoin (DOGE) and Ether (ETH) was significantly lower, with volumes reaching only a tenth of those for XRP.

High trading volumes often foreshadow increased volatility, as they suggest that market participants are anticipating significant developments and are taking speculative positions. Surge in volumes may indicate an impending price breakout if they support a sustained move through resistance or support levels. However, they could also signal a price peak or trough, potentially leading to a reversal if the volume reflects panic selling or aggressive buying at perceived undervalued or overvalued levels.

South Korean traders are known for driving euphoric rallies on tokens, which can amplify buying pressure and influence prices. XRP has gained popularity among Korean traders this year, with political events often sparking sudden price movements in XRP markets locally, as previous CoinDesk analysis has shown.

The recent volume spike coincides with the issuance of an arrest warrant for South Korean President Yoon Suk Yeol early Tuesday by a domestic court. The warrant was sought due to Yoon's controversial and short-lived decision to impose martial law in early December.