XRP (XRP) is under renewed downward pressure as derivatives activity and on-chain positioning proceed to weaken in December. These signals suggest that the market remains to be in risk-off mode whilst the value hovers near key technical support around $2.00.
Key Takeaways:
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XRP futures takers’ buying volume on Binance has declined by 95.7% since July, indicating a decline in demand.
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XRP’s estimated leverage ratio (ELR) has fallen to 0.18, reflecting widespread deleveraging and reduced speculative risk.
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Retail stores, medium and enormous wallets all have negative cumulative volume delta through December, confirming broad-based selling pressure.
XRP someday chart. Source: Cointelegraph/TradingView
Demand for XRP futures collapses as liquidity dries up
Data from CryptoQuant shows that XRP futures takers' buying volume on Binance peaked at over $5.8 billion in July, but has since fallen to around $250 million, a decline of nearly 96%. This collapse highlighted a pointy decline in buying pressure, not only for XRP but across the whole altcoin market.
XRP Ledger Taker Buys Volume on Binance. Source: CryptoQuant
The buyer-buy-sell ratio remained negative for many of this era, suggesting that sellers have dominated XRP derivatives flow throughout. With liquidations piling up and confidence still weak following the October 10 event, the dearth of sustained supply-side activity suggests that downside risks remain elevated. Even ETF-related optimism has didn’t significantly boost demand.
The leveraged XRP positions have been reset with strong market risk reduction
Binance data shows that the estimated leverage ratio of This decline suggests that traders have actively reduced or closed leveraged positions in response to the continued market decline.
Estimated leverage ratio of the XRP Ledger. Source: CryptoQuant
While lower leverage reduces the chance of cascade liquidations, it also reflects muted speculative interest. Such environments mark transitional periods by which markets rebalance before a clearer directional trend becomes established.
Profit taking and wallet data indicate empty order books
CryptoVizArt, lead researcher at Glassnode, reported that on December 11, a 5-7 12 months old XRP wallet with a value basis of $0.40 remodeled $721.5 million in profits.
Order flow data from Hyblock Capital reinforced this bearish context. XRP's cumulative volume delta for December is negative across all participant classes: retail wallets ($0-$10,000) at -$8.68 million, medium-sized wallets ($10,000-$100,000) at -$6.89 million, and enormous wallets ($100,000-$10 million) at -$34 million. The data shows consistent net selling, with no cohort showing sustained buying pressure.
XRP 4 hour chart volume delta cumulative. Source: Hyblock Capital
Overall, XRP stays in a low demand and low leverage environment. The data suggests consolidation or further downside unless liquidity conditions improve significantly.
This article doesn’t contain any investment advice or recommendations. Every investment and trading activity involves risks and readers should conduct their very own research when making their decision. While we attempt to offer accurate and up-to-date information, Cointelegraph doesn’t guarantee the accuracy, completeness or reliability of the knowledge in this text. This article may contain forward-looking statements which can be subject to risks and uncertainties. Cointelegraph is not going to be responsible for any loss or damage arising out of your reliance on this information.
This article doesn’t contain any investment advice or recommendations. Every investment and trading activity involves risks and readers should conduct their very own research when making their decision. While we attempt to offer accurate and up-to-date information, Cointelegraph doesn’t guarantee the accuracy, completeness or reliability of the knowledge in this text. This article may contain forward-looking statements which can be subject to risks and uncertainties. Cointelegraph is not going to be responsible for any loss or damage arising out of your reliance on this information.
