Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
Market structure and on-chain activity are beginning to diverge, in a manner that typically precedes volatility, as XRP enters a new phase. Price action itself is still brittle: XRP is trying to level off after a lengthy bearish trend and a severe breakdown, but it is still trading below significant moving averages, indicating that overall momentum is still weak despite brief recovery attempts.
XRP at local lows
Although volatility has momentarily decreased, and XRP is compressing close to local lows, the market is obviously not yet in a confident recovery phase. Rather, following a sharp drop, the price is moving sideways, which is the kind of situation where derivative positioning usually matters more than spot demand.
The recent 1,606% spike in futures flow becomes significant at this point. Instead of organic spot buying, such an increase typically indicates aggressive positioning. A spike in futures activity while the price stays mostly steady indicates that traders are placing a lot of directional bets. Because leveraged positioning causes instability — once one side is squeezed, price tends to accelerate quickly — this raises the likelihood of sharp moves.
On-chain data shows consistent growth
The fact that there are still a lot of XRP payments going back and forth between accounts indicates that network usage is not declining. The payment volume itself, however, seems more irregular, showing sharp increases and subsequent declines. This pattern suggests short-term spikes in activity rather than consistent growth, which fits with speculative involvement as opposed to long-term accumulation.
From a practical standpoint, XRP is in a transitional phase. The asset is not entirely being abandoned by the market, but it is also not displaying strong bullish conviction. Uneven on-chain volume and high derivatives activity frequently precede volatility growth, which is not always bullish or bearish but powerful enough to end the current lull.
Vladislav Sopov
Dan Burgin