XRP’s Spot Taker CVD shows momentum cooling after a strong accumulation phase through late 2024. As buy dominance expanded earlier, aggressive market orders pushed price toward $3.0–$3.2, reflecting clear directional conviction.
As this phase matured, sell pressure intensified, with red clusters forming near local highs, signaling distribution and profit-taking. This shift gradually weakened momentum, as buyers stopped lifting offers aggressively.
Now, activity transitions into a neutral range, with both buy and sell pressure flattening into early 2026. This balance suggests neither side is in control, as participation turns passive rather than directional.
Historically, such CVD resets mark exhaustion rather than reversal, where conviction clears before expansion resumes. With prices stabilizing near $1.4–$1.6, the market appears to reset, leaving conditions open for the next decisive move.
Leverage flush resets XRP structure as speculation fades
As directional conviction fades and activity turns passive, derivatives positioning now reflects the same reset. XRP’s estimated leverage ratio drops sharply from 0.6 to near 0.3, as excessive leverage unwinds across Binance.
Earlier, elevated leverage supported the rally toward $3.20, amplifying upside through aggressive positioning. As volatility increased, price reversed toward $1.39, triggering liquidations and forcing weaker positions out of the market.
This unwind also drove a 60% decline in Open Interest from 2.6 billion to 1 billion, which confirms that speculative excess has been cleared rather than rotated.
This shift matters because lower leverage reduces fragility, allowing accumulation to replace speculation, which often sets the stage for more sustainable expansion once conviction returns.
Retail strength builds as XRP liquidity stays poised for expansion
Retail participation in XRP strengthens, as small-balance addresses rose to 5.66 million and non-empty wallets exceed 7.7 million, marking sustained network growth. As daily active addresses reach 46,767, a five-week high, price moves toward $1.60, reflecting genuine grassroots demand.
At the same time, whales control over 83% of supply, accumulating selectively while avoiding aggressive distribution. Liquidity remains balanced, with Spot volume near $1.7 to1.8 billion alongside Open Interest 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
- XRP s leverage drop from 0.6 to 0.3 with a 60% Open Interest decline signals reset conditions, clearing speculation and preparing for structured expansion.
- XRP retail growth to 5.66 million wallets and balanced liquidity show steady demand, positioning the market for gradual upside if conviction rebuilds.
Muriuki Lazaro
JournalistMuriuki Lazaro is a on-chain data analyst with a B.Sc. in Data Science. Muriuki specializes in dissecting complex on-chain data into clear and accurate insights for readers in the crypto ecosystem, with a particular focus on Bitcoin.
