XRP On-Chain Data Issues Warning as Sellers Continue to Dominate

XRP sellers maintain the upper hand as investor participation fades and recovery signals remain limited.

XRP continues to show signs of weakening market conditions as key indicators suggest sellers remain in control, according to the latest analysis from CryptoQuant.

Data shows open interest fell to $350.6 million, one of its lowest levels in recent months, indicating traders are closing their futures positions and reducing leverage.

Bearish signals

Although a drop in open interest rates can sometimes ease selling pressure by eliminating leveraged positions, CryptoQuant said that was not the case this time around as capital is also leaving the broader market.

The analytics firm also added that the trend is not limited to futures activity, but also reflects a lack of significant new money flowing into the asset. The company said traders are exiting their positions without being replaced with new capital, leaving the market with lower overall participation.

On-chain data also does not indicate a stronger recovery. XRP’s NVT ratio remains elevated at 162.86, suggesting that network activity has not increased enough to warrant a higher market valuation.

According to the analysis, the combination of declining open interest and a consistently high NVT ratio paints a consistent picture of weakening market conditions. CryptoQuant said investors’ risk appetite had declined significantly and participants appeared exhausted. This left XRP’s price action tilted in favor of sellers.

Institutionally, U.S.-based spot XRP ETFs saw $7.3 million in outflows on July 8, although the funds generally held up better than their Bitcoin and Ethereum counterparts.

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Adoption and visibility

Despite the weak market outlook, XRP continues to see strong real-world adoption in parts of Asia. Earlier this week, Japanese firm SBI VC Trade said companies were increasingly adding XRP alongside Bitcoin to their cash reserves and shareholder benefit programs. The crypto asset also remains one of the most actively traded cryptocurrencies in South Korea.

Ripple also expanded XRP’s visibility this week by securing the first crypto sponsorship from a major US college athletics program. As part of the partnership, the University of Kansas Jayhawks will display the asset’s logo on game jerseys beginning this fall.