XRP is rebounding primarily due to spot buying, while the perp market on Binance remains skewed towards selling.
The spread between spot and Derivative makes XRP 's rebound more unpredictable. Available data suggests the price is being supported by spot demand, but high leverage could lead to sharp volatility if buying pressure weakens.
- XRP 's spot CVD has risen to $267.4 million, its highest level since mid-May.
- Binance Perpetual CVD plummeted to a record low of -$792.5 million, indicating that selling pressure on perp remains strong.
- Leverage on Binance is high, so XRP could experience significant volatility if spot buying demand slows down.
Spot buying pressure is pushing XRP upwards.
XRP is being primarily supported by buyers in the spot market. The price has rebounded to near $1.20 amid a surge in exchange-wide spot CVD to $267.4 million, the highest level since mid-May.
This development contrasts with mid-April, when the index was around -$177 million. The shift from negative to positive indicates that spot money has returned to support prices instead of relying solely on Derivative activity.
Spot buyers are also absorbing selling pressure at the support zone. Spot data from CryptoQuant shows buying returning just as XRP reclaimed a key price level.
Binance Perp continues to buck the price trend.
Selling pressure on Binance Derivative is significantly greater than buying pressure in the spot market. Binance Perpetual CVD has fallen to a record low of -$792.5 million, a far cry from the approximately -$218 million recorded in mid-May.
This development shows that a segment of perp traders are still betting against the upward trend of XRP. When the price rises while leveraged selling pressure remains strong, the upward movement is often less sustainable if the spot price cannot continue to absorb the supply.
On Binance, the Estimated Leverage Ratio of XRP is at 0.187, near the highest point in the monitored period. At the same time, the supply on the exchange has decreased to near 0.0268, suggesting that the market could still reverse quickly if buying sentiment weakens.
The risk of an XRP rebound remains high.
XRP could continue to rise if spot buyers remain strong enough to absorb selling from the perp market. In that scenario, Short positions on Binance could come under pressure, driving up volatility.
Conversely, if spot buying slows down while leverage remains high, the current rally could be reversed very quickly. This is why XRP is in a sensitive price range and more prone to significant volatility than usual.
Summary
XRP is currently being supported by spot buying, but selling pressure on the perp and high leverage make the current trend uncertain. The next development will depend heavily on whether spot demand continues to absorb the selling pressure.
