XRP Faces Selling Pressure Amidst Weak On-Chain Data and ETF Activity
Published
XRP has experienced a notable price decline over the past 24 hours, with indicators suggesting continued selling pressure.
MissedBlock Desk · 2 min read
XRP has experienced a notable price decline over the past 24 hours, with indicators suggesting continued selling pressure. On-chain data from Binance reveals a negative Cumulative Volume Delta (CVD) of -4.33 million XRP, indicating that sell orders have outnumbered buy orders.
This bearish bias in trading activity, according to CryptoQuant, suggests that XRP could remain under pressure if this trend persists without sufficient buying demand to absorb the selling. The 30-day average CVD stands at approximately 0.70. While a negative CVD reading means market sell orders are outweighing market buy orders, it is uncertain whether this automatically signifies traders opening fresh short positions.
Further contributing to the subdued sentiment, spot XRP exchange-traded funds (ETFs) have shown weak institutional interest. In October, these ETFs attracted nearly $19 million in net inflows, marking their second-worst month for inflows. This trend has continued into early November with minimal activity. On November 2nd, investors withdrew approximately $530,000 from XRP ETFs. For four consecutive days starting November 1st, XRP ETFs recorded zero net flows, as reported by SoSoValue.
While the current on-chain data and ETF activity point towards selling pressure, it is important to note the limitations of these indicators. The exact reasons for the specific withdrawal on November 2nd remain unclear, and the data does not definitively predict future price movements or suggest new short positions being opened by sellers. The balance of trading activity favors sellers, but the crypto asset could remain under pressure only if this trend continues without enough buying demand to absorb it.
Why This Matters
The materials describe a narrow update: XRP’s price fell by nearly 7% in 24 hours. Whether the current negative CVD reading automatically means traders are opening fresh short positions.
Broader Context
Source materials place the factual news in this context: Nvidia CEO Jensen Huang admitted to an affair with a woman suspected by US officials of spying for China.