XRP is trading below $1.40 as the market faces selling pressure and uncertainty that has compressed the price into a range that offers little clarity on what comes next. The drop is uncomfortable – but a CryptoQuant report that tracks both on-chain activity and derivatives behavior has identified a structural condition under the price action that remaps the current weakness in a way that changes how it should be read.
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The report examines two independent data streams simultaneously, and both tell the same story. On-chain, the total number of daily transactions of XRP has fallen by 20% compared to three months ago, to approximately 1.78 million daily transactions. Network activity – the measure of real, organic utility flowing through the XRP ledger – has cooled significantly from its recent baseline.
Two separate market dimensions – utilities and intra-chain derivatives activities – have both virtually come to a standstill at the same time. That combination has a specific name in market structure analysis, and the CryptoQuant report’s interpretation of what historically precedes it is the main content the article provides.
The vacuum before the move
The CryptoQuant report connects the two data streams into one structural diagnosis. A simultaneous decline in on-chain transactions and negative funding rates indicates a dormant market – one in which organic network companies are cooling off and perpetual traders are slightly bearish, paying a small premium to maintain short positions against an asset that is not moving meaningfully in either direction.
XRP Volatility Vacuum: Total Apathy Across On-Chain & Derivatives Markets | Source: CryptoQuant
The leverage data reveals the report’s key finding. The estimated leverage ratio on Binance stands at 0.173 – severely suppressed from the six-month peak of 0.260. That suppression is not a warning sign. It is the structural context that changes the entire interpretation of negative financing.
When financing turns negative in addition to a high debt burden, this indicates aggressive shorting with over-indebtedness, which creates fragile market conditions. When funding turns negative alongside a low leverage ratio, it signals something entirely different: the market has simply run out of speculative fuel in either direction.
The 99% collapse in liquidations confirms this reading. There is no crowded short position waiting to be squeezed out. There is no crowded long position waiting to be unwound. The speculative excess has been completely flushed from the system.
The CryptoQuant report identifies this condition as a volatility vacuum. A state of absolute structural exhaustion where the absence of leverage, the absence of aggressive directional positioning, and the absence of on-chain activity combine to create the exact environment that historically precedes major volatility events.
The market is not broken. It’s reset, roll-up and wait for the catalyst – macroeconomic, regulatory or fundamental – that triggers the next price move from a base where there is nothing left to liquidate in either direction.
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XRP remains trapped in consolidation
XRP is trading around $1.37 after weeks of sideways consolidation, with the price continuing to compress below major long-term resistance levels. The daily chart reflects a market that has lost much of its directional momentum after February’s sharp sell-off and entered a low-volatility structure defined by reduced participation from both spot and derivatives traders.
XRP Consolidates below $1.40 level | Source: XRPUSDT chart on TradingView
After falling towards the $1.15 region during February’s capitulation, XRP stabilized and formed an extended range between around $1.30 and $1.50. Since then, every recovery attempt has failed to produce any meaningful continuation. The price repeatedly fell near the declining 100-day moving average. Meanwhile, the 200-day moving average remains significantly higher near the $1.70 region, reinforcing the broader bearish structure that continues to dominate the market.
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Volume has also fallen steadily during the consolidation phase, confirming the absence of aggressive buyers or sellers. This corresponds with the collapse of derivatives liquidations and the heavily suppressed leverage environment currently evident in the XRP markets. The chart now reflects a structurally depleted market rather than an actively trend-sensitive market.
Importantly, XRP remains above the $1.30 support zone. This has formed the basis of the current range since March. A decisive collapse among this region could trigger a new wave of weakness. Reclaiming the $1.45-$1.50 resistance area would likely be necessary to revive bullish momentum and break the current compression phase of volatility.
Featured image of ChatGPT, chart from TradingView.com