XRP has been looking weak lately, with activity across the board slowing down. In fact, traders aren’t as willing to take on new positions as they were, with demand yet to push up again too.
Here’s what you need to know.
XRP OI falls as demand takes a hit
XRP’s Open interest across all exchanges fell to around $773.5 million; that’s a huge drop from levels above $1 billion in May.
Source: Cryptoquant
On Binance alone, the OI fell to nearly $350.6 million. So, it’s clear that leveraged traders may be reducing exposure.
Source: Cryptoquant
Lower Open Interest may help reduce some liquidation-based pressure, but there hasn’t been enough participation. XRP’s market cap fell to about $10.89 billion too, so new capital is not entering the market either.
Meanwhile, the NVT ratio being elevated impied that network activity was yet to be strong enough for recovery.
Exchange reserves fall too
Binance reserves fell to around 2.62 billion XRP as well. There’s not enough tokens available to sell.
Source: Cryptoquant
In theory, lower exchange reserves can help sell-side pressure in the short-term. However, the fall does not mean investors are buying, or that a price recovery could be close.
For now, there’s limited support. Buyers may need to return in strength before the trend improves.
And they’re not being matched by whale activity…
Finally, XRP whale-to-exchange flows have mostly stayed low, despite the occasional spike. After rising to nearly 27,000 in early July, the latest reading dropped to just 82.
Such a reading reduces the risk of whale selling.
Source: Cryptoquant
However, a weak market cap and the higher NVT still alluded to less demand and network activity.
For a stronger recovery, XRP may need OI to stabilize alongside price, new capital to return to the spot market, and on-chain activity to improve.
Until then, lower reserves and whale flows will reduce sell pressure, but not confirm a bullish reversal.
Final Summary
- XRP’s OI fell with weak participation and declining market cap.
- Binance reserves also dropped alongside whale flows on the charts.
