XRP (XRP) is experiencing renewed downward pressure as derivatives activity and on-chain positioning weaken throughout December. These indicators suggest a market still in risk-averse mode, even as the price remains close to significant technical support around $2.00.
Key takeaways:
The taker buy volume for XRP futures on Binance has decreased by 95.7% since July, reflecting reduced demand.
XRP’s Estimated Leverage Ratio (ELR) has dropped to 0.18, indicating widespread deleveraging and lower speculative risk.
Negative cumulative volume delta is observed across retail, mid-size, and large wallets throughout December, confirming substantial selling pressure.
XRP futures demand collapses as liquidity dries up
According to data from CryptoQuant, XRP’s futures taker buy volume on Binance peaked at over $5.8 billion in July but has since dropped to approximately $250 million, a fall of nearly 96%. This collapse has underscored a significant drop in buying pressure, affecting not just XRP but the broader altcoin market as well.
The taker buy-sell ratio has largely remained negative, indicating that sellers have consistently dominated the XRP derivatives market. With liquidations piling up and confidence still uncertain following the Oct. 10 incident, the lack of sustained buyer activity suggests that downside risks remain significant. Even optimism surrounding ETFs has not meaningfully revived demand.
XRP leveraged positions reset with strong market de-risking
Data from Binance shows XRP’s Estimated Leverage Ratio declining to about 0.18, which is one of the lowest readings of the current cycle, coinciding with the price decline from above $3.00 to near $2.00. This reduction suggests that traders have actively reduced or liquidated leveraged positions in response to the extended market downturn.
While lower leverage mitigates the risk of cascading liquidations, it also indicates decreased speculative interest. Such environments often characterize transitional periods where markets rebalance before establishing a clearer direction.
Related: Most crypto sectors lagged Bitcoin over past 3 months: Glassnode
Profit-taking and wallet data indicate blank order books
Glassnode senior researcher CryptoVizArt reported that on Dec. 11, a 5- to 7-year-old XRP wallet with a cost basis of $0.40 realized over $721.5 million in profit, marking a significant distribution event as the price weakened near the $2.00 level.
Order-flow data from Hyblock Capital reinforced this bearish outlook. December’s cumulative volume delta for XRP is negative across all wallet categories: retail wallets ($0–$10,000) at -$8.68 million, mid-size wallets ($10,000–$100,000) at -$6.89 million, and large wallets ($100,000–$10 million) at -$34 million. This data signifies consistent net selling, with no segment showing sustained buying activity.
Overall, XRP persists in a low-demand, low-leverage environment, with data suggesting consolidation or further downsides unless liquidity conditions improve significantly.
Related: Ripple pilots RLUSD on Ethereum L2s in multichain push
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This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision. While we strive to provide accurate and timely information, Cointelegraph does not guarantee the accuracy, completeness, or reliability of any information in this article. This article may contain forward-looking statements that are subject to risks and uncertainties. Cointelegraph will not be liable for any loss or damage arising from your reliance on this information.
