XRP is facing a sustained sell-off as bearish signals dominate the market, with the token dropping 2% over the past week and trading near $1.10, down from highs above $3. CryptoQuant data reveals that the Binance Cumulative Volume Delta (CVD) has plunged to -6.93 million, indicating persistent selling pressure and a lack of bullish momentum. This negative trend has pushed XRP from the third-largest cryptocurrency by market capitalization to sixth place, as retail investors exit positions and whale activity remains subdued.
CVD Signals Weak Momentum
The Cumulative Volume Delta on Binance, a key metric for assessing the balance between buying and selling pressure, has remained in negative territory. Binance's CVD is considered crucial due to its high trading volume across major cryptocurrencies. The current reading of -6.93 million suggests that sell orders have consistently outweighed buy orders, leading to price declines. According to analysts, the continued negative CVD, combined with a lack of improvement in confirmation scores, points to weak short-term momentum. A recovery in the CVD would be needed to signal renewed demand and fresh liquidity entering the market.
Whale Activity Offers Mixed Signals
Despite the bearish flow, some positive signs have emerged. In May, wallets holding approximately 10 million XRP accumulated more coins, indicating whale dominance and absorption of small trader sell-offs. This accumulation was seen by many as a potential pivot from consolidation to expansion. However, bulls failed to sustain a breakout above key support levels, crippling the medium-term outlook. Last week, spot trading data on Binance showed a spike to $406 million from $42 million in May, accompanied by double-digit gains, but this recovery proved short-lived.
Institutional Interest Holds Key
For XRP to regain upward momentum, institutional investors will be critical. Improved macroeconomic factors and a relatively stable 30-day average suggest that a collapse is not imminent, but the lack of bullish catalysts keeps the token under pressure. The ongoing negative CVD and retail exits at the start of Q2 highlight the challenges ahead, though whale accumulation offers a glimmer of hope for a longer-term turnaround.