In the dynamic world of cryptocurrencies, South Korean exchanges have been making waves. XRP and Dogecoin (DOGE) have emerged as significant players, with trading volumes seeing a remarkable surge compared to Bitcoin. This trend has not only captured the attention of traders but also raised questions about market stability and potential future gains.
Unraveling the South Korean Crypto Trading Phenomenon
Section 1: The Trading Volume Surge
XRP and Dogecoin have witnessed a significant increase in trading volumes on South Korean exchanges like Upbit and Bithumb. In the past two weeks, both XRP and DOGE have experienced over 100% price hikes. This surge is attributed to various factors such as favorable U.S. regulatory changes for XRP and endorsements from influential figures like Elon Musk for DOGE. The data shows that XRP and DOGE have cumulatively accounted for as much as 30% of trading volumes on Upbit and nearly 20% on Bithumb in the past 24 hours. This is unusually high compared to the usual leader, Bitcoin.However, part of this trading volume could be due to wash trading, where automated programs create the illusion of a heavily traded market. Despite this, the trading frenzy on South Korean exchanges has had a significant impact on the prices of these tokens.Section 2: Global Trading Leadership
Upbit led XRP volumes in dollar terms across all global exchanges in the past 24 hours, including Binance and Coinbase. While Binance and Coinbase lead DOGE trading volumes globally. This shows the widespread interest in these two tokens and their potential to influence the global crypto market.XRP and DOGE were the best-performing majors in the past weeks as Bitcoin hit new lifetime highs. Both tokens are up more than 100% in the past 14 days, with their futures products surging to yearly highs. In crypto circles, South Korean traders are known for their ability to push 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 SEC's 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 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.Section 3: Price Stability and Future Prospects
XRP's price stability above $1 suggests potential for further gains. While some analysts see this as a positive sign, others caution that the South Korean trading frenzy might indicate market froth. As such, attention from South Korean markets may mark a local top for tokens as it is a sign of potential overheating.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."As of Asian afternoon hours Wednesday, XRP trades at just over $1 and DOGE is just under 40 cents. The future of these tokens remains uncertain, but their performance on South Korean exchanges is certainly a topic of interest for the global crypto community.