Data on XRP Chain Points to Accumulation, but Chart Warns of Squeeze – Analyst


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XRP has regained the $1.40 level as the market heats up and buyers begin to assert control after weeks of consolidation. The move is modest but directional — and a CryptoQuant analyst has just identified a signal in order flow data that suggests the current recovery may have much more structural support than price action alone reveals.

The 100-day moving average of the XRP buy/sell ratio on Binance rose to 0.9766 on May 3 – a notable rise for an indicator that filters out daily noise and highlights the most durable and sustainable behavioral trends in the derivatives market. A reading near 1.0 means that over a long period, aggressive buyers have been nearly matching aggressive sellers in order flow – a situation that reflects a sustained buildup in the medium to long term rather than chasing short-term momentum.

The context that makes that reading significant is the price at which it occurred. XRP has corrected sharply from its peak of $3.55 in July 2025 to the current level around $1.39 – a decline of more than 60%. Throughout this entire correction, the 100-day average buying pressure has been rising towards the highest level currently observed.

In the markets, this type of divergence is aggressive Accumulation of buyers Through a continuous decline in prices – tends to describe a certain type of participant. No one reacts to the price. One position in front of him.

The signal on the chain is bullish. The graph is not

Cryptoquant analyst The accumulation signal is not allowed to stand unchallenged. Despite the constructive 100-day average buying pressure reading, the short-term technical picture raises concerns that require equal attention.

XRP is currently forming a direct bearish flag at a key support level – a pattern that reflects a tightening of price action after a decline, with lower highs pressing towards a floor that is not yet confirmed as solid. This pressure tends to move in the direction of the previous trend rather than against it. The previous trend for XRP was bearish.

XRP Ledger: Receiver Buy and Sell Ratio | Source: Cryptoquant
XRP Ledger: Receiver Buy and Sell Ratio | source: Cryptoquant

Above the pattern there is a hidden bearish divergence on the RSI – a signal that momentum is weakening even when the price appears to be stabilizing. Together, the two technical signals describe a market in which sellers maintain structural control despite the superficial appearance of support.

The analyst’s conclusion bears both readings without forcing a decision between them. On-chain data describes a gradual bottoming phase, with accumulating buying pressure quietly building beneath the price. The chart warns that the bottoming process may not be completed – and that the risk of a long squeeze, where bullish bets are forcibly unwound in a sharp downward move, remains high until the price clears resistance with strong, confirmed volume.

XRP at $1.40 is at a real crossroads. The accumulation is real. The danger is real, too. The difference between the two is resolved when the market decides which framework to operate in – and that decision has not yet been made.

XRP holds $1.40 as price presses below key resistance

XRP is trading at around $1.40 after recovering that level, but the broader structure remains one of compression rather than expansion. The chart shows a long consolidation phase after the sharp sell-off in February, with the price forming a narrow range between support at around $1.30 and resistance at $1.45.

XRP is consolidating below the major resistance | Source: XRPUSDT chart on TradingView
XRP is consolidating below the major resistance | source: XRPUSDT chart on TradingView

Reclaiming $1.40 is technically constructive, but not decisive yet. The price continues to trade below the bearish 100-day and 200-day moving averages, both of which are acting as dynamic resistance. This excess pressure has limited all attempts at recovery so far, keeping the broader trend biased to the downside despite stabilization in the short term.

At the same time, volatility clearly reduced. The candles have become tighter, the wicks are shorter, and the volume has decreased compared to the capitulation phase. This type of structure usually precedes expansion, but does not indicate a trend on its own.

The key level to watch remains the $1.45-$1.50 area. A clean break above it would shift the structure towards a higher level formation and open the way towards $1.70. On the downside, a loss of $1.30 would invalidate the current base and likely trigger a move back towards the $1.10-1.20 demand zone.

XRP is not trending. It is winding.

Featured image from ChatGPT, chart from TradingView.com

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