XRP’s sell pressure is on the lower side, so why is the market still weak?

XRP has been looking weak lately, with activity across the board slowing down. In fact, traders aren’t as willing to take on new positions as they were, with demand yet to push up again too.

Here’s what you need to know.

XRP OI falls as demand takes a hit

XRP’s Open interest across all exchanges fell to around $773.5 million; that’s a huge drop from levels above $1 billion in May.

On Binance alone, the OI fell to nearly $350.6 million. So, it’s clear that leveraged traders may be reducing exposure.

Lower Open Interest may help reduce some liquidation-based pressure, but there hasn’t been enough participation. XRP’s market cap fell to about $10.89 billion too, so new capital is not entering the market either.

Meanwhile, the NVT ratio being elevated impied that network activity was yet to be strong enough for recovery.

Exchange reserves fall too

Binance reserves fell to around 2.62 billion XRP as well. There’s not enough tokens available to sell.

In theory, lower exchange reserves can help sell-side pressure in the short-term. However, the fall does not mean investors are buying, or that a price recovery could be close.

For now, there’s limited support. Buyers may need to return in strength before the trend improves.

And they’re not being matched by whale activity…