Trading volume in XRP and dogecoin (DOGE) is much higher than that of bitcoin (BTC) on South Korean crypto exchanges this week, a frenzy that may have helped raise prices of the two tokens in the crazed market.
CoinGecko data shows XRP and DOGE have cumulatively accounted for as much as 30% of trading volumes on Upbit, the country’s biggest exchange, and nearly 20% on Bithumb in the past 24 hours. That is unusually higher than usual leader bitcoin and indicates a short-term demand for the tokens in the country.
Part of these volumes could be attributed to wash trading, however, where automated programs continuously trade a token to give the illusion of a heavily traded market.
Upbit led XRP volumes in dollar terms across all global exchanges in the past 24 hours, including venues such as Binance and Coinbase, the data shows. (These trades were placed against Korean won but have been converted to U.S. dollars at current exchange rates).
Binance and Coinbase, however, lead DOGE trading volumes across global exchanges.
XRP and DOGE were the best-performing majors in the past weeks as BTC hit new lifetime highs. Both tokens are up more than 100% in the past 14 days, data shows, with their futures products surging to yearly highs.
In crypto circles, South Korean traders are known for pushing euphoric rallies on tokens, contributing to buying pressure and possibly influencing prices.
Gains in XRP started last week as the shifting U.S. regulatory climate supported growth in tokens related to companies hampered by the Securities and Exchange Commission’s (SEC) actions (XRP is closely related to Ripple Labs).
Meanwhile, DOGE has surged following a Republican win at the U.S. elections and a renewed promotional push by technocrat Elon Musk — who has been picked to lead the proposed Department of Government Efficiency (D.O.G.E) non-governmental unit under a Trump administration.
As such, attention from South Korean markets may mark a local top for tokens as it a sign of froth, as a CoinDesk analysis previously noted.
However, CoinDesk markets analyst Omkar Godbole sees growth in XRP prices in the near term.
“XRP is holding steady above $1 after a powerful rally—the strongest in three years! While intraday charts hint at a possible pullback, it could set the stage for another upward move,” Godbole said.
“Momentum indicators on longer charts are firmly bullish. Key supports to watch out for are 96 cents and 65 cents. Resistance looms at $1.26 and $1.40, echoing the supply zone from September 2021,” he added.
XRP trades at just over $1 as of Asian afternoon hours Wednesday. DOGE is just under 40 cents.
