Recent market data indicates a concerning trend for XRP, marked by declining trader leverage appetite and significant capital outflows. The cryptocurrency’s Estimated Leverage Ratio (ELR) closed weekly at 0.36, representing its lowest level in a month. This metric points to traders actively reducing their leveraged positions on exchanges, signaling reduced risk appetite and increased caution.
Compounding this lack of confidence is a sustained period of negative exchange netflows for XRP. Since late July, more XRP has been withdrawn from exchanges and sold than deposited and bought, resulting in net outflows exceeding $222 million. This consistent outflow pattern strongly reflects bearish investor sentiment.
Technical analysts highlight a critical support level for XRP around $2.71. A sustained breach of this support could trigger further selling pressure, potentially driving the price down toward the $2.50 level. Conversely, overcoming resistance above the $3 mark would be a key signal of renewed buying interest and potential upward momentum.
While broader cryptocurrency market trends could influence XRP’s trajectory, current indicators like the falling ELR and persistent negative netflows paint a picture of waning confidence, leaving the asset vulnerable to further near-term downside pressure. Stability hinges on defending crucial support or a breakout confirming renewed bullish conviction.