XRP in the Spotlight as Crypto Market Reels from Historic Outflows

Whale-sized capital flight puts Ripple's darling under the microscope.

Market watchers are scrambling to decode XRP's next move as liquidity vanishes faster than a Bitcoin maximalist's patience. The token that once danced with regulators now faces its ultimate stress test—can it survive the great crypto cash-out of 2025?

While traditional finance bros clutch their pearls, chain analysts spot opportunity in the chaos. 'This isn't your grandma's bull market correction,' says one trader watching order books thin. 'It's a full-system purge—and the strongest protocols will emerge leaner.'

As exchanges report their biggest outflows since the 2022 Terra collapse, XRP's true believers point to its battle-hardened compliance framework. Skeptics counter that even a gold-plated lawsuit defense can't stop panic selling. One thing's certain: when the music stops, the coins with real utility won't need chairs.

Bonus jab: Meanwhile in Wall Street, hedge funds are still trying to short crypto with 2008-era risk models. Good luck with that.

In Brief

• XRP shows concerning signs of weakness, while the overall market remains uncertain.
• XRP’s Estimated Leverage Ratio (ELR) on Binance drops to 0.36, revealing a decrease in traders’ risk appetite.
• Over $222 million has left the XRP spot market since July 29, indicating sustained selling pressure.
• This massive disengagement reveals a continuation of the downward trend if buyers do not return.

Investors Disengage : Sentiment Indicators in Decline

In a context of widespread caution in the market, signals sent by XRP traders’ activity show a clear decline in short-term confidence after the unlocking of 1 billion tokens this 1st August by Ripple.

On Binance, the crypto’s Estimated Leverage Ratio (ELR) recently dropped to 0.36, its lowest weekly closing level this month. This indicator, measuring the ratio between open interest and exchange reserves of an asset, is often interpreted as a barometer of speculative appetite.

A drop in ELR reflects a more defensive attitude among operators. This withdrawal translates into a clear decline in risk-taking, suggesting speculators do not anticipate an immediate rebound.

Such caution is confirmed in the spot market, where capital flows show a clear imbalance. Indeed, over $222 million have left XRP wallets since July 29, indicating constant selling pressure despite weak demand. Market data reveals a worrying dynamic :

• A net negative flow of $222 million : investors are leaving massively, preferring to take profits rather than reinforce their positions ;

• An absence of buying counterparties : the market does not see a significant recovery in buying interest ;

• A strengthening downward trend : fewer buyers, more sellers, thus pressure on price.

If this trend continues, the decline could become self-sustaining, especially as buyers appear to be currently in retreat.

Technical Levels Under Watch : Increased Risk of Pullback

Beyond sentiment and FLOW indicators, XRP’s technical levels also raise concerns. Persistent selling pressure is pushing crypto toward critical support zones.

As selling pressure intensifies, Ripple crypto risks falling to $2.71. This level constitutes an important floor. In case of a break, a further drop to $2.50 would then be possible. This scenario fits into a general downward momentum and cannot be ruled out if the current trend continues.

However, a bullish outcome remains technically possible, though currently unlikely. Breaking the $3 threshold remains possible if buying momentum strengthens.

Such a breakthrough could enable a return toward $3.39, a level considered as an important intermediate resistance. However, this target assumes a marked change in market sentiment, with a significant return of buyers, which is not yet observed in current indicators.

If the current bearish pressure confirms, XRP could experience a new correction wave, contrary to the hopes of recovery that had emerged in recent weeks. The situation remains delicate: technical signals point to a continuation of consolidation, or even a sharper drop. In the medium term, the behavior of inflows and outflows, as well as traders’ positioning on derivatives, must be closely monitored to identify any signs of a reversal.

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