- Sudden XRP inflows above $2.5 in recent rallies disrupted bullish momentum and triggered sharp reversals.
- The Liquidation Heatmap pointed to a likely 10% drop, with dense sell-side liquidity near the $2 mark.
Ripple [XRP] saw a surge in Open Interest recently, but the price has been unable to climb higher. Instead, it fell below the $2.3 level and was retesting the same as resistance at press time.
In doing so, it was moving as anticipated in an earlier report.
On-chain signals flash mixed cues
Naturally, a glance at on-chain data reveals that Active Addresses on the XRP Ledger have declined steadily through 2025.
The 30-day moving average has been in steady decline since January. The metric appeared to have halted its downtrend in recent weeks, but still reflected bearishly for long-term investors.
Meanwhile, Exchange Reserve levels on Binance have followed a broader downtrend since November 2024.
This was an overall positive development, but the trend has not been a uniform decline like Bitcoin [BTC] witnessed over the past couple of years. Reduced reserves imply cold storage and accumulation of the altcoin.
Instead, XRP saw sharp spikes, such as the ones in March and May.
Even though the altcoin was trading within a long-term range, attempts to climb to $2.5 or $3 were met with rapid inflows that undid bullish progress.
XRP spot buying activity assumes dominance
A look at the Spot Taker CVD for the past three months showed that Taker Buy Volumes have become dominant. This shift occurred on the 21st of May.
While it does not promise immediate price gains, it was a metric that investors could keep an eye on.
A Taker Sell Dominant phase could see XRP tumble below the $2 mark. And there’s on-chain data to support that possibility.
According to Coinglass, the 3-month Liquidation Heatmap revealed a strong magnetic pocket near $2.
XRP witnessed a build-up of liquidation levels at this psychological support since mid-April. As reported earlier, XRP was trading within a range.
The price was below the $2.3 mid-range level at press time.
At press time, another pocket of liquidity at $2.36 could pull prices higher. This bounce beyond the mid-range level should not incite FOMO among traders, but caution.
In fact, if prices slide to $2 or even $1.95, those zones may offer better risk-reward entries—particularly if the Spot Taker CVD continues its buyer dominance.
