XRP is trading below $1.40 as the market faces selling pressure and uncertainty which has compressed the price into a range that offers little clarity on what comes next. The decline is uncomfortable – but a CryptoQuant report that tracks both on-chain activity and derivatives behavior has identified a structural condition beneath the price action that reframes the current weakness in a way that changes how we read it.
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The report examines two independent data sources simultaneously, both telling the same story. On-chain, the total number of daily transactions for XRP fell by 20% compared to three months ago, stabilizing at around 1.78 million daily transactions. Network activity – a measure of the true organic utility flowing through the XRP ledger – has slowed significantly from its recent baseline.
Two separate dimensions of the market – on-chain utilities and… Derivatives activity – They both retreated into near silence simultaneously. This combination has a specific name in market structure analysis, and the CryptoQuant report’s explanation of what preceded it historically is the most important content that the article provides.
Vacuum before moving
Cryptoquant a report Connects the two data streams into a single structural diagnosis. The simultaneous decline in the number of cross-chain transactions and negative funding rates describes a dormant market – where organic network facilities cool, frequent traders tend to fall slightly short, paying a small premium to maintain short positions for an asset that is not moving advantageously in either direction.
XRP Volatility Vacuum: Total Apathy Across On-Chain & Derivatives Markets | Source: CryptoQuant
The leverage data is where the most important findings of the report appear. The estimated leverage ratio on Binance is 0.173 – severely low compared to its six-month peak of 0.260. This repression is not a warning sign. It is the structural context that changes the entire interpretation of passive financing.
When financing turns to the downside coupled with high leverage, it indicates aggressive, over-leveraged short selling that creates fragile market conditions. When financing turns negative along with a leverage ratio that low, it indicates something else entirely: the market has run out of speculative fuel in both directions.
A liquidation collapse of 99% confirms this reading. There is no crowded short position waiting to be squeezed. There are no long, crowded positions waiting to be resolved. The speculative surplus has been completely wiped out of the system.
The CryptoQuant report defines this state as a volatile vacuum. A state of absolute structural exhaustion where the absence of leverage, the absence of aggressive trend setting, and the absence of on-chain activity combine to create the microenvironment that historically precedes major volatility events.
The market did not break. It’s the reset, the rewind, and the wait for the catalyst – macroeconomic, regulatory, or fundamental – that ignites the next directional movement from the bottom with nothing left to filter in either direction.
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XRP is still stuck in the consolidation process
XRP is trading near $1.37 after weeks of sideways consolidation, with the price continuing to press below key long-term resistance levels. The daily chart reflects a market that has largely lost trend momentum after the sharp sell-off in February, and has entered a low-volatility structure characterized by low participation from both spot and derivatives traders.
XRP Consolidates below $1.40 level | Source: XRPUSDT chart on TradingView
After crashing towards the $1.15 area during the capitulation event in February, XRP stabilized and formed an extended range between roughly $1.30 and $1.50. Since then, all attempts at recovery have failed to achieve meaningful continuity. The price was repeatedly rejected near the bearish 100-day moving average. Meanwhile, the 200-day moving average remains significantly higher near the $1.70 area, reinforcing the broader bearish structure that continues to dominate the market.
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Trading volume also declined steadily throughout the consolidation phase, confirming the absence of aggressive buyers or sellers. This is consistent with the collapse of derivatives liquidations and the severely pent-up leverage environment currently visible across XRP markets. The chart now reflects a structurally stressed market rather than an actively trending market.
Most importantly, XRP continues to hold above the $1.30 support area. This has served as the basis for the current range since March. A decisive break below this area could spark another wave of weakness. While reclaiming the $1.45-$1.50 resistance zone may be necessary to revive the bullish momentum and break the current volatility compression phase.
Featured image from ChatGPT, chart from TradingView.com
