XRP remains under steady selling pressure, showing little momentum as the broader cryptocurrency market stays fragile. The token has failed to establish a clear recovery trend, reflecting cautious investor sentiment and low speculative activity. While volatility has eased compared to earlier sharp moves, the lack of strong buying interest suggests the market is consolidating rather than rebounding.
A recent CryptoQuant report offers further insight by analyzing XRP trading volume on Binance using a 30-day Z-Score. The data shows XRP trading near $1.37, with daily volume around 173 million XRP. The Z-Score near zero indicates that trading activity is in line with recent averages, without major spikes or drops. This balance in volume usually points to equilibrium between buyers and sellers, often occurring after periods of high volatility. Rather than signaling a clear bullish or bearish trend, such conditions typically accompany market stabilization or repositioning.
In practical terms, this suggests traders are reassessing their positions while waiting for clearer directional signals. Until trading volume or sentiment picks up decisively, XRP’s price action may remain slow, with consolidation likely to continue in the near term.
XRP Volume Equilibrium Points to Consolidation Before Next Big Move
Historical comparisons in the CryptoQuant report indicate that XRP’s volume Z-Score has often acted as a leading indicator for major price moves. Sharp spikes in the metric have frequently preceded significant upward or downward movements, as sudden increases in trading activity usually reflect shifts in market conviction. Conversely, when the Z-Score stabilizes near zero, the market tends to enter a consolidation phase where buying and selling pressures remain balanced before a new trend emerges.
The current reading fits this pattern. With the Z-Score near neutral levels, XRP appears to be in a holding pattern rather than building momentum for an immediate breakout. This environment generally corresponds with lower volatility, slower price movement, and cautious positioning among traders.
However, such equilibrium phases rarely last indefinitely. A decisive increase in trading volume could quickly change the landscape. A sustained move in the Z-Score above +2 would likely signal growing participation and potential bullish momentum, while a sharp drop below that threshold could point to renewed defensive positioning and the risk of further downward pressure.
For now, volume behavior suggests preparation rather than resolution, with the next significant move likely depending on whether participation expands or contracts.
XRP Price Tests Key Support as Downtrend Continues
XRP continues to face sustained selling pressure, with the chart showing a clear deterioration in structure since late 2025. After failing to hold above the $2.00–$2.20 range, the price accelerated downward, pushing XRP toward the $1.30–$1.40 zone, which now serves as the nearest visible support area.
The recent decline appears sharp rather than gradual, suggesting reactive selling rather than orderly repositioning. From a trend perspective, XRP is trading below its major moving averages, which are now sloping downward. This alignment typically reflects a bearish medium-term structure, where rallies tend to meet resistance rather than spark sustained upward moves. The inability to reclaim these averages reinforces the view that momentum currently favors sellers.However, the price context suggests a different market phase. Volume dynamics also warrant attention. The recent decline occurred alongside elevated trading activity compared to previous consolidation periods. This indicates active participation in the selloff, rather than moves driven by thin liquidity. Historically, such volume spikes can precede either a capitulation low or continued downside, making confirmation essential.
From a technical perspective, a sustained recovery above the $1.80–$2.00 range would be needed to stabilize market sentiment. Until then, the broader structure suggests caution, with consolidation or further downside remaining plausible scenarios as market confidence rebuilds.
Featured image from ChatGPT, chart from TradingView.com
Frequently Asked Questions
FAQs Liquidity vs Liability Historical Lessons for the XRP Momentum Strategy
BeginnerLevel Questions
Q What do liquidity and liability mean in simple terms
A Liquidity is how easily you can buy or sell an asset without drastically changing its price High liquidity means easy trading A liability is a legal debt or obligation you owe In crypto this often refers to regulatory risks or legal challenges that can become a financial burden
Q Why is this comparison important for an XRP trading strategy
A XRPs price momentum has historically been heavily influenced by its legal status and its trading volumeaccess on exchanges Understanding both helps you gauge risk and opportunity timing
Q What is a momentum strategy for XRP
A Its a trading approach that tries to profit by buying XRP when its price is rising strongly and selling when that momentum slows or reverses rather than holding longterm
Q Can you give a real example of a liquidity event for XRP
A Yes When a major exchange like Coinbase lists or relists XRP it dramatically increases the number of people who can easily buy and sell it This often causes a sharp price increasea positive liquidity event
Q And an example of a liability event
A The SEC lawsuit against Ripple in December 2020 is the prime example The immediate uncertainty and risk caused a sharp price drop overriding all other factors at that moment
Advanced Strategic Questions
Q How have historical liquidity changes specifically impacted XRPs momentum
A Periods of high liquidity allowed for explosive sustained momentum rallies Conversely when US exchanges delisted it postlawsuit reduced liquidity led to fragmented trading weaker momentum and higher volatility
Q Whats the key historical lesson about trading liability resolutions
A The lesson is buy the rumor sell the news Positive legal developments often cause momentum to build