XRP consolidation may transform into explosive rally if $1.40 is topped: Data

Meanwhile, liquidity has contracted sharply. CryptoQuant data shows XRP's 30-day liquidity index on Binance dropping to 0.053, the lowest level since 2021. The 30-day trading volume stands at nearly 3.77 billion XRP, marking one of the weakest periods of activity in recent years.

XRP Binance liquidity index. Source: CryptoQuant

The price action aligns with this slowdown. XRP trades near $1.38 with limited movement over the past three weeks, consistent with a quieter order book and reduced trader participation. These lower-liquidity phases may coalesce momentum and precede a stronger directional move once activity returns.

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XRP traders position in futures markets

While XRP price consolidates, onchain data shows an aggregated spot cumulative volume delta (CVD) of -$153 million and a futures CVD near -$295 million, pointing to a reduction in aggressive selling.

XRP price, aggregated open interest, funding, spot, and futures CVD. Source: velo.chart

The buy-side activity has not expanded, keeping the price movement muted. The funding rates have turned slightly positive at 0.06%, signaling a mild long bias.

Open interest has climbed to nearly $769 million, suggesting fresh positions are entering the market.

XRP/USDT on the one-day chart. Source: Cointelegraph/TradingView

From a technical perspective, a daily close above $1.40 opens the door to $1.60–$1.67. That $1.40 level also aligns with the 50-day moving average, which may flip into support on a bullish breakout.

The liquidation data shows roughly $250–$300 million in cumulative long/short positions at risk within a 10% move in either direction. Compared to larger assets like BTC (BTC) and Ether (ETH), the liquidity is relatively small, suggesting lower trader participation near $1.40.

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