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XRP Futures Market Sees Shift as Buyers Outpace Sellers

Highlights:

  • The XRP futures market sees a shift with buyers slightly outpacing sellers, signalling declining selling pressure.
  • XRP Futures Taker CVD hits new highs, indicating reduced dominance of sellers.
  • XRP ETFs attract $1.4B in inflows, mostly driven by retail investors despite market volatility.

A slight shift has been noted in the XRP futures market recently. The derivatives market shows that, within 90 days, buyers have slightly outpaced sellers, as per CryptoQuant data. According to the latest reading on Binance, buy orders are about 516.4 million XRP, exceeding the sell orders, which stand around 513.1 million XRP. This translated to a net taker delta of approximately 3.36 million XRP.

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This shift suggests that buyers are slowly having an upper hand in the XRP futures market. The buy orders, though relatively small, indicate a decline in selling pressure. Over a few months, sellers dominated the market regularly. However, the momentum seems to be swinging towards buyers.

CVD Indicator Shows Strong Shift in XRP Futures

The XRP Binance Futures Taker CVD (90D) has just hit its highest point since November. The indicator is used to track the cumulative change between the buy and sell orders within a 90-day period. Despite CVD showing a negative value at -1.58 billion XRP, the figures show an improvement over the previous months.

This surge indicates a declining dominance in selling activity. As a result, we could potentially be entering a rebalancing period in the market. The rise in the CVD 90D indicator aligns with the increase in the buy-side pressure, creating conditions ripe for a possible price surge.

XRP Market Sees Steady Growth with $1.4B in Inflows

Amid the shift in XRP futures, there has been a rising investor interest in XRP exchange-traded funds (ETFs). Since the products were launched in November last year, they have attracted $1.4 billion. Regardless of the volatility in the XRP market, ETFs have remained resilient, which shows stable demand in the Ripple token.

According to James Seyffart, an ETF analyst at Bloomberg, retail investors have contributed most of the capital inflow rather than institutional investors. He also added that the trend has remained consistent even in the recent market fluctuations.

XRP ETFs attracted about $58 million in February alone, indicating continued support. The gradual rise indicates that the investors might be focusing on the long-term potential of XRP despite the short-term losses in the market.

According to Sosovalue data, XRP ETFs on 12 March recorded outflows of more than $6 million. Spot Bitcoin and Ethereum ETFs, however, continued posting inflows, attracting $53.9 million and $72.4 million, respectively.

XRP Price Action

The XRP token has shown impressive performance recently in the face of the ongoing market fluctuations. XRP has surged by more than 5% over the last 30 days, despite the price dropping from a high of $1.6 to $1.3. As of this writing, the price is hovering around $1.43, with a market capitalization of $87.64 billion. Meanwhile, its trading volume has exploded by 20% to $2.91 billion.

XRP Price Chart: CoinMarketCap

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