XRP Liquidity Crisis Deepens: Binance Futures Volume Crashes 96% as Token Breaks Below $2 Support
With a current price of $1.92, down 3.2% over the last day, and a sharp decrease from its July peak of almost $3.40, XRP is still on a rapid
Quick overview
- XRP's price has dropped to $1.92, down 3.2% in the last day and significantly below the $2.00 psychological barrier.
- Futures trading activity for XRP has collapsed by 95.7%, indicating a severe reduction in speculative buying pressure.
- Technical indicators show a confirmed medium-term downtrend, with both the 50-day and 100-day moving averages sloping lower.
- The near-term outlook suggests potential further declines toward the $1.70-$1.80 range if selling pressure continues.
With a current price of $1.92, down 3.2% over the last day, and a sharp decrease from its July peak of almost $3.40, XRP XRP/USD is still on a rapid December decline. With technical indicators and on-chain data presenting an increasingly pessimistic picture for the fourth-largest cryptocurrency by market capitalization, the coin has now decisively dropped below the psychologically crucial $2.00 barrier.
XRP Futures Trading Activity Collapses to Multi-Month Lows
The futures markets, where XRP’s taker buy volume on Binance has drastically decreased, provide the most concerning indicator. Aggressive buy orders in XRP futures reached above $5.8 billion in July, according to CryptoQuant data, but have since fallen to under $250 million, a startling 95.7% shrinkage that highlights the almost total evaporation of speculative buying pressure.
This collapse isn’t happening alone. For the majority of this time, the taker buy-sell ratio has stayed negative, suggesting that sellers have continuously controlled the flow of XRP derivatives. This institutional demand hasn’t been enough to counteract the wider pull away from leveraged positions and speculative trading, despite the fact that spot XRP exchange-traded funds have seen net inflows of about $1 billion since their November launch.
The vulnerability is not limited to Binance. According to market-wide data, open interest in XRP futures is currently at about $3.71 billion, significantly less than the peak of $10.94 billion seen in the middle of the year. During Tuesday’s breakdown below $1.93, trading volume spiked to 246% above the 24-hour average, but this spike was more indicative of panic liquidations than of renewed buying interest—roughly $14.47 million in leveraged XRP positions were wiped out as part of a larger $584 million crypto liquidation event.
Leverage Ratios Hit Cycle Lows as Traders De-Risk
One of the lowest values in the current market cycle, Binance’s Estimated Leverage Ratio for XRP has dropped to about 0.18. The price decline of XRP from above $3.00 to the $2.00 level has coincided with a decline in this indicator, which measures the link between open interest and exchange reserves. This suggests that traders have aggressively reduced or closed leveraged holdings in reaction to sustained downside pressure.
Lower leverage indicates significantly less speculative activity even though it lowers the chance of cascade liquidations, which is good for market stability. Bulls hoping for an impending reversal find little solace in such conditions, which usually indicate transitional periods where markets adjust before developing more distinct directional trends.
XRP Faces Large-Scale Profit-Taking and Persistent Selling Pressure
The migration is verified by on-chain data. A dormant XRP wallet holding tokens with a $0.40 cost basis made almost $721.5 million in profit on December 11, according to Glassnode researchers. This enormous distribution event happened right as the price dropped close to $2.00. Instead than indicating bottoms, this kind of long-term holder surrender frequently implies local tops.
Hyblock Capital’s order-flow data supports this pessimistic outlook. All participant classes have negative net positioning according to XRP’s December cumulative volume delta: Mid-size wallets ($10,000-$100,000) at -$6.89 million, large wallets ($100,000-$10 million) at -$34 million, and retail wallets ($0-$10,000) at -$8.68 million. There isn’t any cohort showing consistent buying pressure, which suggests widespread distribution as opposed to targeted profit-taking.
XRP/USD Technical Structure Deteriorates as Moving Averages Turn Bearish
Technically speaking, XRP has confirmed a medium-term downtrend by forming a distinct series of lower highs and lower lows after peaking earlier this year in the $3.40–$3.60 range. Both the 50-day and 100-day moving averages have started to slope lower, indicating that rallies are being sold rather than accumulated, and the token is currently trading below both of them.
The 200-day moving average is the next significant structural support level, and it is presently trading between $1.70 and $1.80. If selling pressure continues, this zone has been indicated by several technical experts as the likely destination. Following Tuesday’s fall, the $1.93 level, which had previously served as support, has now turned into resistance, and persistent trading below $1.88 maintains near-term bearish pressure.
Weakness is further confirmed by volume dynamics. Since August, trading activity has been slowly declining, a sign of poor dip-buying demand and declining market participation. Instead of continuation, which is sometimes a sign of local market tops, distribution followed the October volatility surge.
XRP Price Prediction: $1.70-$1.80 Target Emerges as Base Case Scenario
The combination of bearish indications indicates that XRP’s path of least resistance is still firmly downward. Any significant trend reversal would require XRP to recover between $2.30 and $2.50 with growing volume, indicating a return in demand as opposed to short-term relief rallies.
Near-term outlook (1-4 week): The 200-day moving average is currently located in the $1.70–$1.80 range, and more falls toward this level are possible if the price breaks below $2.00. This is a further 6–11% decline from the current levels. Losses could increase toward the $1.50 psychological threshold if this support is not maintained.
Medium-term oulook (1-3 months): The market will need time to recover from recent selling pressure and rekindle speculative interest, thus consolidation in the $1.70–$2.20 range seems most plausible. Although ETF inflows can offer a bottom, persistent upward momentum appears doubtful in the absence of a catalyst to spark derivatives activity.
Longer-term outlook (6–12 months): More upbeat predictions are still in circulation, with some analysts predicting possible advances toward $4–$5 if XRP can break through the $3.60–$3.80 resistance range with significant volume. Such scenarios, however, call for a significant change in the market structure and a resurgence of risk appetite throughout the entire industry—conditions that seem far off given present posture.
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