Altcoins are gaining traction with traders already pitching high third-quarter projections. XRP is at the center of these gains, recording greater institutional demand behind Bitcoin (BTC). The asset is up 9.5% in the last seven days, wiping out previous losses, although certain risks remain.
XRP Spot Data Flips Green After Negative Stretch
XRP bulls are gearing up for a short-term recovery that might extend to a cycle if on-chain factors align. Data shows the asset’s Spot CVD turned positive across several crypto exchanges. This comes amid low sentiment in the derivatives market, which is slowing the expected rally.
At the time of writing, there is a widening divergence between the two markets. Spot volumes are up astronomically, fueling recent retail demand across the board. Figures hit $406 million today from $42 million in May.
The spark within two months signals heightened market activity, as spot trades absorb available supply. Estimated spot CVD on Binance is also improving, but not at the bullish levels seen in previous upward trends.
Meanwhile, the perpetual market is the direct opposite, with a heavy sell side. On Binance, values declined by over $735 million from $48 million in May. The fall in this market can be linked to the poor run of crypto assets across two quarters.
 
In Q4 2025, traders projected a strong year for crypto, with the asset set to break multi-year highs. Initial expectations hinged on large corporate holdings before bearish sentiment crept in, sparking widespread liquidations.
Over 35% of Bitcoin and altcoin gains were lost within months, and this affected the futures market. To put this in proper context, traders projected the red wave deep into this quarter. Consequently, XRP bulls dumped huge holdings as traders faced worsening headwinds.
“The divergence was accompanied by a notable reduction in leveraged positioning. Binance Open Interest fell from around $255 million on May 22 to $203 million on July 7, a decline of roughly $52 million, or just over 20%. The combined pattern points to a market where spot demand is improving while derivatives traders remain cautious and leverage continues to unwind.”
XRP price surged 9.5% this week and trades just over $1.12. Monthly losses have been reduced to just 1% with long-term speculations taking shape. Last year, the asset flipped USDT to become the third-largest asset by market cap, but currently sits in sixth place.
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