XRP Liquidity Dries Up: Futures Buy Volume Plummets 95.7% on Binance

XRP has dropped below $2, reflecting broader market deterioration and altcoin struggles. Key points include:

  • Market conditions are challenging for altcoins as Bitcoin captures liquidity and attention.
  • XRP's trading activity, both spot and derivatives, has significantly decreased, indicating reduced investor risk appetite.
  • The Taker Buy Volume on Binance plummeted from over $5.8 billion in July to about $250 million, a 95.7% decline.
  • This reduction highlights dwindling buying pressure and low trader confidence.

XRP Ledger Taker Buy Volume on Binance | Source: CryptoQuant

XRP Liquidity Compression and Market Context

  • Broader market stress continues, with liquidations and fragile confidence impacting XRP negatively.
  • Bitcoin absorbs most capital, limiting altcoin recovery potential, including XRP.
  • Sustained drop in aggressive buying on Binance shows depth of demand erosion.
  • The Taker Buy Sell Ratio remains negative, indicating seller dominance in the derivatives market.

XRP Ledger Taker Buy Sell Ratio on Binance | Source: CryptoQuant

XRP Price Movement

  • XRP is below its key moving averages, reinforcing bearish momentum.
  • The price has formed lower highs and lows, confirming a medium-term downtrend.
  • The $1.70–$1.80 area represents the next major support level if selling pressure continues.
  • Volume has decreased since August, showing weak participation and dip-buying interest.

XRP testing key demand level | Source: XRPUSDT chart on TradingView

For a trend reversal, XRP needs to reclaim the $2.30–$2.50 range with increasing volume, indicating renewed demand.