XRP faces persistent selling pressure and market uncertainty, hindering its ability to reclaim higher price levels. Despite occasional rebounds, momentum remains fragile, with traders cautious amid volatility.
A recent analysis of exchange flow data reveals a spike in XRP exchange inflows on Binance prior to a significant rally. Historically, large inflows can indicate potential sell pressure, but this event also preceded a strong price expansion.
Liquidity dynamics are crucial. USD liquidity, representing the depth of capital supporting XRP, has declined, suggesting thinner market depth. This can amplify price swings.
In XRP terms, liquidity has compressed, indicating reduced active supply on exchanges. This contraction mirrors conditions seen before previous upward moves.
While exchange inflows are moderate, both USD and XRP liquidity are contracting. This suggests a market structure where price reactions could become sharper. XRP is currently in a corrective phase, trading below key moving averages that now act as resistance.
Immediate support is near $1.30-$1.40, with resistance at $1.80-$2.20. A decisive reclaim of higher levels is needed to confirm a stronger trend.