XRP Records Thinning Spot Activity Amid Rising OI: Possible Impact on Price

XRP has reached an important point where spot market activity has crashed while traders continue to increase their positions in the derivatives market. 

This comes during a broader downtrend that has erased about 70% of XRP’s value since it reached its all-time high of $3.66 in July 2025. The current situation has raised new questions about where XRP could move next.

XRP Spot Trading Activity Drops to Near-Zero Levels

Recent data from Binance shows that spot market activity has almost disappeared. According to CryptoQuant, exchange inflows have fallen 99.1%, while outflows have dropped 99.0% compared with previous levels. 

In addition, the number of deposit addresses has declined 97.6% below the weekly average, confirming that far fewer users are moving XRP onto the exchange.

Trading volume has also weakened sharply. Binance’s spot volume has fallen 54.6% week over week and now stands more than 67% below both its monthly and quarterly averages. 

With the drop in trading activity, XRP has traded in a tight range between $1.086 and $1.113 for nearly two weeks. During that time, the price has continued to battle the 50-day moving average at $1.11. 

In an ongoing downtrend, this sort of price compression without stronger trading volume does not confirm that the market has formed a bottom. Instead, it shows that both buyers and sellers remain cautious and are unwilling to commit significant capital.

Derivatives Traders Continue Adding Positions

However, while spot traders have reduced their activity, derivatives traders have continued increasing their exposure. Specifically, Open Interest has risen 5.9% to $423.8 million, while the estimated leverage ratio has climbed to 0.162, its highest level during the recent period.

Meanwhile, funding rates have declined 29.9% from last week and have remained close to zero for much of the period. This suggests the market does not currently have the conditions that usually lead to a strong one-sided short or long squeeze.

Despite this, funding rates remain much higher than their longer-term averages. They are 172.5% above the monthly baseline and 271.7% above the quarterly baseline, showing that leverage across the market remains elevated despite the recent decline. 

Notably, these signals suggest traders are quietly adjusting their positions, not necessarily making strong directional bets.

Important Price Levels to Watch

The sharp decline in spot activity means that any major catalyst, whether it comes from macroeconomic events, regulation, or institutional developments, could trigger a larger price move because order book liquidity has become much thinner. 

However, as funding rates remain close to neutral, current market data does not clearly favor either an upward or downward squeeze. 

For now, XRP’s nearest support remains between $1.086 and $1.10, where the price has traded for the past two weeks. Below that, the $1.00 to $1.05 range stands out as an important psychological and technical support area. 

A decisive daily close below $1.00 could open the way for a move toward $0.90 to $0.93, while $0.85 to $0.90 remains the deeper support zone that many technical analysts see as the most likely floor for the current correction.

On the upside, $1.13 has now changed from support into resistance. A strong daily close above $1.15, where an important trendline also meets the price, could clear the way for a move toward $1.20 and later $1.25. 

However, XRP also needs a meaningful return of spot trading volume above $1.15 before traders can confidently say that the market structure has improved. Until that happens, the broader trend continues to favor lower prices.