Interest in XRP is waning, with key on-chain indicators showing short-term weakening momentum. In the context of overall market sentiment turning less optimistic, this data suggests that XRP prices may continue to adjust deeper in the coming sessions.
Trader Withdrawal: Over $222 Million in Outflows Indicates Pessimistic Sentiment
The estimated leverage ratio (Estimated Leverage Ratio – ELR) of XRP on Binance is sharply declining, reflecting a drop in investor confidence and risk appetite. According to data from CryptoQuant, the ELR index is currently at 0.36 — the lowest closing level in the past 4 weeks.
ELR is a metric that measures the average leverage used by traders, calculated by dividing the total open positions by the amount of XRP reserves on the exchange. A decrease in this index indicates that traders are gradually shying away from high-risk positions due to concerns about short-term prospects.
In the spot market, data from Coinglass recorded net outflows of over $222 million since July 29, reflecting that selling pressure still dominates and buying power is almost insufficient to absorb the supply.
Continuous outflows could prolong the bearish trend, as supply pressure increases while demand weakens.
XRP Faces $2.71 Mark – But Still Has a Chance to Recover to $3.39
If the selling trend continues, XRP risks dropping to the support area of $2.71. If this level cannot hold, the decline could extend to $2.50.
However, if demand returns strong enough to push prices above the psychological level of $3, a recovery towards the $3.39 area could very well occur. Investors should closely monitor cash flow dynamics and trading behavior to assess short-term reversal opportunities.
