Is XRP positioned for expansion? What does the cooling momentum reveal?


XRP’s Spot Taker CVD shows momentum cooling after a strong accumulation phase until late 2024. As buying dominance expanded earlier, aggressive market orders pushed the price towards $3.0-3.2, reflecting belief in a clear direction.

As this stage matured, selling pressure intensified; Red clusters formed near local highs, signaling distribution and profit taking. This shift gradually weakened the momentum as buyers stopped aggressively removing bids.

Source: CryptoQuant

Activity now transitions to a neutral range and both buying and selling pressure plateaus towards early 2026. This balance suggests that neither side is in control as participation becomes passive rather than directional.

This is how it is historically CVD Where conviction disappears before expansion continues, it resets rather than reverses sign extinction. The market appears to be resetting, with prices stabilizing around $1.4 to $1.6, leaving conditions open for the next decisive move.

Leveraged flush resets XRP structure as speculation fades

As directional belief weakens and activity becomes passive, derivative positions now reflect the same reset. XRPs Estimated leverage dropped sharply from 0.6 to 0.3 as excess leverage was eliminated across Binance.

Previously increased leverage supported the rise towards $3.20, reinforcing the rise through aggressive positioning. The price reversed towards $1.39 as volatility increased, triggering liquidations and forcing weaker positions out of the market.

Source: CryptoQuant

This relaxation also led to a 60% decrease in Open Positions from 2.6 billion to 1 billion; This confirms that speculative excess is cleared rather than rotated.

This shift is important because lower leverage reduces vulnerability, allowing accumulation to replace speculation, which often paves the way for more sustainable expansion once faith returns.

Retail strength grows as XRP liquidity poised to expand

Retail participation in XRP grows stronger addresses with small balances increased to 5.66 million wallets that are not empty It exceeded 7.7 million, indicating sustainable network growth. As daily active addresses hit a five-week high of 46,767, the price is moving towards $1.60, reflecting real base demand.

At the same time whale control More than 83% of the supply is accumulated selectively, avoiding aggressive distribution. Liquidity remains balanced spot volume approximately 1.7 to 1.8 billion dollars Open Position Around $2.3 to $2.4 billion.

This structure suggests stable participation, where retail growth and controlled liquidity create conditions for measured expansion.


Final Summary

  • The decrease in XRP’s leverage from 0.6 to 0.3 indicates that conditions will be reset, speculations will be eliminated and structural expansion will be prepared, along with the 60% Open Interest decrease.
  • XRP’s retail growth of 5.66 million wallets and balanced liquidity indicate that demand is stable, leaving the market ready for a gradual rise if sentiment re-establishes.



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