Ripple’s XRP has seen a notable uptick in Open Interest, but its price action tells a different story. Despite increased market participation, XRP dropped below the crucial $2.3 level and was retesting it as resistance at press time. The move was in line with earlier projections, suggesting a predictable market structure—but one fraught with bearish pressure.
On-Chain Metrics Paint a Murky Picture
On-chain data offers little optimism for long-term XRP investors. Active Addresses on the XRP Ledger have steadily declined throughout 2025, with the 30-day moving average dropping since January. Although the trend has flattened recently, it still suggests dwindling user engagement on the network.
Exchange Reserves on Binance tell a different story. While the overall trend since November 2024 has been downward—typically a bullish sign indicating accumulation—XRP’s path has not been smooth. Sudden spikes in March and May disrupted this decline, likely triggered by traders rushing to sell during brief price rallies near the $2.5 and $3 levels. These inflows diluted bullish momentum and reinforced resistance levels.
Spot Buying Gains Traction, But Volatility Looms
A closer look at the Spot Taker CVD reveals a shift in momentum. Since May 21, Taker Buy Volumes have dominated, suggesting growing interest from spot buyers. While this doesn’t guarantee a price breakout, it’s a bullish undercurrent worth monitoring.
However, the 3-month Liquidation Heatmap from Coinglass signals potential turbulence. A significant liquidity pocket near the psychological $2 level has been building since mid-April, hinting at a magnet zone that could draw prices downward in the short term.
Should XRP fall to $2 or even $1.95, these levels might present more favorable entry points, especially if spot buyer dominance holds. Meanwhile, a brief bounce toward $2.36—a liquidity-rich zone—could offer short-lived relief but is unlikely to break XRP out of its long-term range.
While XRP’s Open Interest and spot buying trends show encouraging signs, mixed on-chain metrics and liquidation pressures suggest traders should proceed with caution. A sustained move above $2.3 remains elusive, and price dips may offer better opportunities for long-term accumulation.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
Also Read: Will Ripple (XRP) Dominate in 2025? Analysts Reveal Bold Price Predictions Despite Market Slump
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