The XRP price is showing resilience after a sharp rally, but the latest market data presents a mixed scenario. While the price has pulled back from the local high near $1.70, it continues to hold above the key support range. On the other hand, the aggressive selling is being absorbed rather than immediately pushing the market lower. Besides, the open interest seems to be cooling after its sharp spike, which raises the question of whether there is a possibility of another leg up or a warning of a deeper correction.
The XRP price is showing a divergence from the market selling activity. The price rallied from around $1 to nearly $1.70, while the aggregated futures CVD continued to fall to about $5.89 billion. Moreover, the spot CVD also dropped to nearly $1.70 billion, suggesting the sellers have remained active. However, the selling has failed to push the XRP price lower, pointing towards a possible seller absorption.
Meanwhile, open interest surged toward $1.4 billion during the rally before cooling to around $1.2 billion, indicating that some leverage has already been removed. For XRP bulls, holding the $1.35 area while CVD remains negative would strengthen the absorption thesis. A breakdown accompanied by accelerating CVD losses would instead warn that sellers are gaining control.
XRP spot ETFs are adding a positive demand signal to the market as inflows picked up. The latest data shows $110.49 million in weekly net inflows, taking cumulative inflows to around $1.66 million.
On the other hand, the XRP exchange reserves have declined from around 2.8 billion to 2.6 billion, reducing the amount of XRP readily available on the exchange.
The combination of declining exchange reserves and strengthening ETF demand suggests that XRP is seeing a tighter supply-demand balance. If this trend continues while XRP holds its key support levels, the reduced exchange supply could help amplify the impact of renewed buying pressure and support another leg higher.
The charts suggest a cautious-to-bullish scenario for the XRP price. The ETF inflows are rising, while the reserves have fallen from their highs. This suggests demand is improving as the amount of XRP available on the exchanges declines. However, it still needs to hold key support before the bullish setup can strengthen.
Besides, the derivative data adds another positive signal. XRP has climbed despite deeply negative spot and futures CVD. This suggests sellers are being absorbed, while open interest has cooled after its sharp rise. Therefore, if the XRP price holds $1.35 to $1.38 and ETF inflows remain strong with improving CVD, it could retest $1.70. Besides, a break below the support could trigger a deeper correction.
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