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In an already tense crypto market, XRP is drawing attention for the wrong reasons. Several technical and on-chain indicators are turning red, signaling growing selling pressure and marked investor disengagement. The decline in leverage exposure, combined with significant outflows, fuels the risk of key support breaks. If the momentum does not reverse quickly, crypto could enter a more pronounced correction phase, revealing increasing vulnerability to market uncertainties.
In Brief
XRP shows concerning signs of weakness, while the overall market remains uncertain.
XRP’s Estimated Leverage Ratio (ELR) on Binance drops to 0.36, revealing a decrease in traders’ risk appetite.
Over $222 million has left the XRP spot market since July 29, indicating sustained selling pressure.
This massive disengagement reveals a continuation of the downward trend if buyers do not return.
Investors Disengage : Sentiment Indicators in Decline
In a context of widespread caution in the market, signals sent by XRP traders’ activity show a clear decline in short-term confidence after the unlocking of 1 billion tokens this 1st August by Ripple.
On Binance, the crypto’s Estimated Leverage Ratio (ELR) recently dropped to 0.36, its lowest weekly closing level this month. This indicator, measuring the ratio between open interest and exchange reserves of an asset, is often interpreted as a barometer of speculative appetite.
A drop in ELR reflects a more defensive attitude among operators. This withdrawal translates into a clear decline in risk-taking, suggesting speculators do not anticipate an immediate rebound.
Such caution is confirmed in the spot market, where capital flows show a clear imbalance. Indeed, over $222 million have left XRP wallets since July 29, indicating constant selling pressure despite weak demand. Market data reveals a worrying dynamic :
A net negative flow of $222 million : investors are leaving massively, preferring to take profits rather than reinforce their positions ;
An absence of buying counterparties : the market does not see a significant recovery in buying interest ;
A strengthening downward trend : fewer buyers, more sellers, thus pressure on price.
If this trend continues, the decline could become self-sustaining, especially as buyers appear to be currently in retreat.
Technical Levels Under Watch : Increased Risk of Pullback
Beyond sentiment and flow indicators, XRP’s technical levels also raise concerns. Persistent selling pressure is pushing crypto toward critical support zones.
As selling pressure intensifies, Ripple crypto risks falling to $2.71. This level constitutes an important floor. In case of a break, a further drop to $2.50 would then be possible. This scenario fits into a general downward momentum and cannot be ruled out if the current trend continues.
However, a bullish outcome remains technically possible, though currently unlikely. Breaking the $3 threshold remains possible if buying momentum strengthens.
Such a breakthrough could enable a return toward $3.39, a level considered as an important intermediate resistance. However, this target assumes a marked change in market sentiment, with a significant return of buyers, which is not yet observed in current indicators.
If the current bearish pressure confirms, XRP could experience a new correction wave, contrary to the hopes of recovery that had emerged in recent weeks. The situation remains delicate: technical signals point to a continuation of consolidation, or even a sharper drop. In the medium term, the behavior of inflows and outflows, as well as traders’ positioning on derivatives, must be closely monitored to identify any signs of a reversal.
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Diplômé de Sciences Po Toulouse et titulaire d’une certification consultant blockchain délivrée par Alyra, j’ai rejoint l’aventure Cointribune en 2019.
Convaincu du potentiel de la blockchain pour transformer de nombreux secteurs de l’économie, j’ai pris l’engagement de sensibiliser et d’informer le grand public sur cet écosystème en constante évolution. Mon objectif est de permettre à chacun de mieux comprendre la blockchain et de saisir les opportunités qu’elle offre. Je m’efforce chaque jour de fournir une analyse objective de l’actualité, de décrypter les tendances du marché, de relayer les dernières innovations technologiques et de mettre en perspective les enjeux économiques et sociétaux de cette révolution en marche.
DISCLAIMER
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.
