XRP is grappling with intensified selling pressure as blockchain and market data reveal sellers taking the forefront in both spot and futures markets. According to data from CryptoQuant, both markets have seen sellers dominate, exacerbating the downward pressure on XRP amidst ongoing volatility in the cryptocurrency space.
Futures Market Imbalance Deepens
Data from Binance indicates a substantial decline in XRP’s perpetual CVD (Cumulative Volume Difference) from negative $109 million to approximately negative $1.1 billion as of November 12. This marks an expansion of the negative gap by $991 million. This particular metric evaluates the difference over time between aggressive buy and sell orders.
CryptoQuant, known for its comprehensive on-chain and exchange data analysis, highlights that this shift in the Binance platform’s negative balance has grown more than tenfold from previous levels. The stark increase suggests a significant rise in market orders for selling, alongside short positions being opened or existing long positions being closed.
The $991 million deterioration in XRP’s Binance perpetual CVD evidences a decisive dominance of sellers in the futures market.
Sellers Lead in Spot Market as Well
The selling pressure is not confined to futures alone. The All CEX Estimated Spot CVD metric, tracking major centralized exchanges, plummeted from negative $400 million to negative $2.9 billion over the same period. This change further highlights a $2.5 billion increase in favor of the sellers.
This significant shift indicates that investors have been opting for selling over buying in the spot market as well. The data suggests that XRP’s recent weak price performance might be tied not just to general market volatility but also to a clear shift in order flow toward selling on exchanges.
Pressure Mounts Above $1 Benchmark
With momentum waning, there is concern that XRP might struggle to maintain its long-held $1 mark. The concurrent strengthening of sellers in both spot and futures markets could further hinder short-term recovery efforts.
The additional $2.5 billion negative gap in the spot market underscores the predominance of selling in XRP transactions.
Following a noticeable shift in order flow since September 23, these data points reveal persistent pressure on XRP’s price, influenced by evolving investor behaviors. Despite ongoing attempts to chart a clear direction, current exchange data suggests sellers are maintaining control over buying participants.
