Recent analytics from CryptoQuant suggest that XRP is experiencing persistent selling pressure, as indicated by data from Binance. The cryptocurrency has seen a significant price decline, dropping from over $2 to around $1.07 in recent months.
CVD Data Highlights Weak Demand
The CVD Confirmation Score, which evaluates price movements alongside Cumulative Volume Delta (CVD), shows a concerning trend for XRP. Currently, the CVD on Binance is recorded at approximately minus 6.93 million, indicating that the volume of sold orders exceeds that of purchases. This negative CVD suggests ongoing bearish sentiment among traders.
Despite a stabilization of XRP’s 30-day Price-CVD Confirmation Score at about 0.84, CryptoQuant warns that this level does not reflect strong enough buying demand to indicate a meaningful price reversal. The current liquidity flows and order dynamics favor sellers, reinforcing the bearish trend.
Implications for XRP's Short-Term Outlook
The persistence of negative CVD values, coupled with a lack of improvement in the Confirmation Score, implies that XRP could continue to struggle in the short term. Analysts suggest that without a significant uptick in buyer interest and a corresponding shift in CVD to positive territory, XRP’s price momentum may remain weak.
In contrast, a sustained recovery in CVD, especially if it coincides with an increase in the Confirmation Score, could signal the emergence of new liquidity and buyer demand in the market.
This is not investment advice.
