XRP selling pressure grows as market weakens
- CryptoQuant said XRP (CRYPTO:XRP) is showing signs of weaker market conditions.
- Falling Open Interest and a high NVT Ratio suggest sellers remain in control.
- Despite the slowdown, XRP adoption continues to grow in Japan and South Korea.
CryptoQuant said XRP (CRYPTO:XRP) is showing signs of weakening market conditions as traders reduce exposure and sellers remain in control.
Open Interest has fallen to US$350.6 million, one of its lowest levels in recent months, while the firm's analysis suggests new capital is not replacing exiting investors.
“The combination of falling Open Interest and a persistently high NVT Ratio paints a consistent picture of weakening market conditions,” CryptoQuant said.
CryptoQuant said XRP's NVT Ratio remains high at 162.86, indicating network activity has not grown enough to support its current valuation.
US spot XRP exchange-traded funds recorded US$7.3 million in net outflows on July 8, although they have performed better than comparable Bitcoin and Ethereum funds.
Despite weaker market sentiment, Japan's SBI VC Trade said more companies are adding XRP to their treasury reserves and shareholder reward programmes.
Ripple also expanded XRP's visibility by signing the first cryptocurrency sponsorship of a major US college athletics programme with the University of Kansas.
At the time of reporting, XRP price was $1.11.
