As XRP continues to struggle amid the broad crypto market volatility while failing in multiple attempts to recover, key on-chain metrics are pointing to increased selling pressure among traders.
While momentum remains extremely weak, latest data from crypto analytics platform, Cryptoquant, shows that sellers have dominated both XRP’s spot and futures markets, putting it at risk of losing the long-held $1 mark.
XRP perpetual CVD on Binance falls by $991 million
Per the data, XRP’s cumulative volume delta (CVD) across major cryptocurrency exchanges shows that aggressive selling has dominated both its spot and futures market since September 23.
As of November 12, XRP’s Perpetual CVD on Binance has fallen from -$109 million to about -$1.1 billion. It is important to note that the CVD of an asset is a key metric that measures the difference between the volume of aggressive buy orders and aggressive sell orders over time.
While the metric turns negative when more traders are aggressively selling than buying, the -991 million negative balance in the Binance perpetual CVD signals stronger selling pressure.
With the negative balance on Binance exceeding its previous level by more than 10 times, this shows that traders have placed significantly more market sell orders than buy orders, either by opening short positions or closing existing long positions.
What’s behind the $2.5 billion shift?
Apart from its futures market, further data shows that sellers have also dominated XRP’s spot activity across all major crypto exchanges, including Binance.
Notably, XRP’s All CEX Estimated Spot CVD moved from -$400 million to -$2.9 billion over the same period.
While this marks a $2.5 billion increase in the imbalance favoring sellers, it indicates that XRP spot traders have also been selling XRP more aggressively rather than buying, propelling the asset for further price declines.