Key Takeaways
Why is XRP’s rising deposit activity significant?
Because it reflects growing retail and institutional participation, signaling heightened on-chain movement and renewed confidence around key support zones.
How are derivatives metrics shaping XRP’s near-term momentum?
Rising Open Interest and positive Funding Rates show stronger speculative appetite, hinting at renewed optimism, while cautioning against overleveraged positions.
Since early October, XRP [XRP] deposit activity on Binance has soared to its highest level since June, reflecting renewed retail and institutional movement.
The rise in smaller inflows (~1K XRP) highlights growing retail engagement and broader distribution among wallets, while large, periodic transfers suggest institutional repositioning.
Although exchange inflows typically signal sell-side pressure, this trend seems more like cautious rebalancing than panic exits.
However, XRP’s ability to sustain stability above $2.3 amid these deposits points to steady accumulation and resilience in market structure.
Are sellers losing control as the Taker Ratio nears equilibrium?
The Taker Buy/Sell Ratio sits at approximately 0.96, showing that while sell pressure still dominates, its strength is gradually waning.
Typically, a ratio nearing 1 signals equilibrium between buyers and sellers, marking the early stages of market stabilization.
This is especially significant as XRP continues to hold its footing near the $2.3–$2.4 support region, suggesting that larger traders may be accumulating rather than distributing.
Furthermore, historical patterns indicate that when this ratio flips above 1, short squeezes often follow.
Therefore, a sustained increase in buyer aggression could be the catalyst that drives XRP’s next bullish leg toward the mid-$2.6 range.
XRP’s rebound from the demand zone
After weeks of price compression, XRP rebounded strongly from its $2.2–$2.3 demand zone, confirming renewed interest from spot traders.
This rebound has established a higher low, a pattern that often precedes breakouts when supported by consistent volume.
The next major hurdle lies at the descending resistance near $2.6, which has repeatedly capped upward attempts since early September.
A close above this threshold could validate a structural reversal, opening the path toward the $2.8–$3.0 region.
However, failure to sustain momentum above resistance could invite another retest of the lower boundary, delaying bullish continuation despite improving on-chain and sentiment indicators.
Source: TradingView (XRP/USDT 1-Day Chart)
Speculative energy returns to XRP
Open Interest rose 6.17% to 1.16B, underscoring rising speculative participation in XRP’s derivatives market.
This expansion reflects traders’ growing appetite for volatility and directional exposure following weeks of consolidation.
Typically, Open Interest growth during price recovery phases signals new entrants anticipating a shift in market bias.
The consistent rise across major exchanges confirms that leverage is returning to the ecosystem, increasing both liquidity and potential volatility.
However, this renewed enthusiasm must be sustained by actual spot demand to prevent over-leveraged corrections.
Consequently, traders appear to be positioning themselves cautiously, balancing optimism with risk management near critical resistance levels.
Rising Funding Rates highlight renewed optimism
Funding Rates have surged by 53.47%, showing a decisive tilt toward long-side positioning among leveraged traders.
This sharp rise indicates growing optimism for an extended recovery phase, particularly after October’s downturn.
Historically, such spikes reflect bullish conviction but can also act as early signals of market overheating.
If Funding Rates continue rising too rapidly, short-term corrections may follow as traders unwind excessive leverage.
However, current data suggests sentiment is still within a healthy range, supporting gradual upward momentum.
The sustained increase in long positions further reinforces the idea that XRP’s market structure is shifting toward cautious optimism.
Conclusively, XRP’s market structure shows signs of strength as inflows, Open Interest, and Funding Rates all trend higher.
The fading sell pressure reflected in the Taker Ratio supports the case for continued recovery momentum.
However, the $2.6 resistance remains the key hurdle that must be breached for a sustained breakout.
A rejection at this level could reintroduce short-term consolidation within the $2.3–$2.4 range. Overall, XRP’s outlook leans cautiously bullish, with market resilience suggesting buyers are regaining control.
