The recent surge in trading volumes of Dogecoin (DOGE) and XRP on South Korean crypto exchanges has caught the attention of the market. According to CoinGecko data, 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. This frenzy may have helped raise prices of the two tokens in the crazed market.
As Shaurya Malwa notes in his article, “South Korean traders are known for pushing euphoric rallies on tokens, contributing to buying pressure and possibly influencing prices.” This phenomenon is not new, as we have seen similar trends in the past where South Korean markets have driven up prices of certain tokens. However, it is essential to consider the potential for wash trading, where automated programs continuously trade a token to give the illusion of a heavily traded market.
The recent 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. Meanwhile, DOGE has surged following a Republican win at the U.S. elections and a renewed promotional push by technocrat Elon Musk.
According to CoinDesk markets analyst Omkar Godbole, “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.”
As the market continues to watch the developments in South Korea, it is essential to keep an eye on the potential for further gains in XRP and DOGE. However, it is also crucial to be cautious of the potential for froth in the market, as South Korean trading frenzy might indicate a local top for tokens.
Prediction:
In the short term, we can expect XRP to continue its upward trend, with a possible pullback in the near future. However, the overall trend remains bullish, and we may see further gains in the coming weeks. DOGE, on the other hand, may continue to be driven by Elon Musk’s promotional efforts and the Republican win in the U.S. elections.
In the long term, the market will likely continue to be driven by regulatory developments, adoption rates, and technological advancements. As the market continues to evolve, it is essential to stay informed and adapt to the changing landscape.
