Ripple has come under pressure in recent weeks. The altcoin, which started the year on a bullish note and showed a strong correlation with Bitcoin, has since shifted direction on the charts.
XRP dropped nearly 50% from its yearly high and traded near $1.89 at press time. Bearish momentum continued to build.
XRP bearish wave driven by derivatives
The recent price decline has been largely driven by sustained selling pressure in the Derivatives market, as reflected in falling volumes and shifting trader behavior.
This pressure has been most evident on Binance, an exchange that offers a strong snapshot of global market activity due to its dominant market share.
CryptoQuant data showed Taker Buy Volume on Binance fell roughly 95.7% over the past month, dropping from about $5.8 billion to near $252 million.
That collapse coincided with a steady downtrend in XRP’s price, highlighting weakening buyer aggression during the sell-off.
CryptoQuant analyst Darkfrost linked the downturn to the 10th of October liquidation event, alongside capital rotation from altcoins into Bitcoin.
On top of that, derivatives positioning remained skewed toward sellers. The Taker Buy/Sell Ratio stood near 0.883 at press time, indicating sell-side trades continued to outweigh buy orders.
Insider distribution weighed on sentiment
Ripple Co-Founder Chris Larsen has also contributed to XRP’s recent weakness, particularly over the past week.
In July, analyst Ja Martun tracked these sell-offs and reported that Larsen triggered a notable distribution of his XRP holdings as the asset approached a local high.
The sell-off lasted ten days and saw over 200 million XRP offloaded into the market, adding to downward price pressure.
Martun remarked,
“Still buying? You’re the exit liquidity. He’s dumping on you.”
Despite this, Spot investors have continued to accumulate XRP. In a recent purchase, investors added approximately $11 million worth of XRP from the market.
Since the week beginning the 8th of September, data showed consecutive weekly Net Inflows, with investors steadily accumulating the altcoin. Total accumulation during this period reached $2.51 billion.
That behavior suggested Spot buyers maintained a bullish bias. However, Derivatives-led selling and insider distribution continued to dominate near-term price action.
Accumulation weakens
To gauge whether accumulation reflected conviction, AMBCrypto reviewed XRP’s Accumulation/Distribution indicator.
The indicator remained in negative territory at press time, showing that selling activity continued to outweigh buying pressure.
The A/D line tracked a net reading near -2.5 billion XRP and continued trending lower. If that trend persisted, XRP could face additional downside pressure, with $1.50 emerging as a potential support level to watch.
Final Thoughts
- XRP’s recent slide reflected a market where selling pressure outweighed conviction, even as some buyers stayed active.
- If derivatives sentiment remains fragile, price recovery may stay limited.
