XRP, the seventh largest cryptocurrency by market capitalization, has seen an impressive $1.21 billion in trading volume over the past 24 hours, indicating increased market activity amid a broader crypto market sell-off.

The increase in volume comes as the cryptocurrency market is experiencing a $203 million sell-off, with several cryptocurrencies trading in red, raising questions about XRP's short-term price direction.

In this light, traders and investors are closely monitoring XRP as they try to gauge what could come next for one of the largest cryptocurrencies by market cap.

The crypto market is facing a sell-off as leverage use increased over the weekend, a move that historically precedes market volatility. Bitcoin briefly approached $70,000 over the weekend but failed to continue its pace, falling 2% to below $66,781 at press time.

This decline was mirrored by other major cryptocurrencies, with $203.36 million in crypto positions liquidated, indicating that the market is heavily leveraged. Over $163 million in longs, or bets on higher prices, were liquidated across crypto futures that track major tokens, indicating a leverage flush.

At the time of writing, XRP was down 3.46% in the last 24 hours, to $0.532. For days, XRP remained between its daily moving averages of 50 and 200, at $0.5592 and $0.5395, respectively, until it fell significantly on Monday. As the sell-off accelerated, XRP lost the critical daily SMA 200 at $0.539 and fell to a low of $0.530 in today's trading session.

XRP has slipped to the lower end of its current range; the $0.545 level will be closely monitored to determine if this support holds or falls in the coming days.

XRP's price action, like that of most other cryptocurrencies, is influenced by the larger crypto market, particularly Bitcoin and Ethereum. If the markets rebound from their recent sell-off, XRP may follow suit.

In this scenario, XRP might aim for a retake of the daily SMA 50 near $0.56, followed by $0.631. However, future market drops may increase XRP's losses.