XRP is showing bearish signs: a descending triangle, dominant sell-side CVD and weakening on-chain and derivatives metrics increase the probability of a retest of $2.72 in the short term unless demand and network activity rebound quickly.
Descending triangle with flat support near $2.72 indicates downside risk.
Spot taker CVD shows sustained sell-side dominance, limiting bullish momentum.
On-chain and derivatives metrics: transactions ~109K, network growth ~859, OI down 6.51% to 2.78B.
XRP technical outlook: descending triangle and sell-side CVD point to a possible retest of $2.72 — read the on-chain and derivatives analysis and key takeaways.
Is XRP’s chart signaling a deeper decline toward $2.72?
XRP currently trades inside a descending triangle, with lower highs compressing against a flat support near $2.72. Technical weakness combined with dominant sell-side cumulative volume delta (CVD) and softer on-chain and derivatives activity increases the probability of a retest of $2.72 in the near term.
How does Spot Taker CVD affect XRP price momentum?
The Spot Taker CVD is in “Taker Sell Dominant” territory, indicating net selling pressure from aggressive participants. Short-term bounces have failed to reverse the CVD trend, which suggests sellers retain control of momentum and limit sustained bullish recoveries.
Source: TradingView (image provided for visual context)
Can weakening on-chain and derivatives activity affect XRP’s stability?
On-chain metrics reveal a notable cooldown in network participation. Transaction count fell to ~109K and network growth dropped to ~859, indicating fewer active addresses and lower throughput on the XRP Ledger. This reduced participation tends to suppress organic demand and can amplify technical downtrends.
Source: CryptoQuant (data snapshot)
What do derivatives tell us about participation and risk?
Open Interest (OI) contracted by 6.51% to 2.78 billion, showing lower derivatives participation and fewer new directional bets. A falling OI alongside sell-side dominance often precedes trend continuation rather than reversal, though lower leverage can reduce the scale of forced liquidations.
Source: CryptoQuant (derivatives overview)
Summary table: Key on-chain & derivatives metrics
| Metric | Value | Implication |
|---|---|---|
| Transaction count | ~109K | Lower throughput, reduced demand |
| Network growth | ~859 | Fewer new addresses, weaker adoption signals |
| Open Interest | 2.78B (-6.51%) | Lower derivatives participation |
| Spot Taker CVD | Taker Sell Dominant | Aggressive net selling pressure |
How to assess short-term risk for XRP?
- Monitor Spot Taker CVD for changes from sell to neutral/buy dominance.
- Watch transaction count and network growth for renewed on-chain engagement.
- Track Open Interest for increasing participation that could fuel rallies.
Source: Santiment (on-chain snapshot)
Frequently Asked Questions
Will XRP fall to $2.72?
Current indicators favor a retest: a descending triangle, sell-side CVD, falling OI and cooled on-chain activity raise the probability of another move toward $2.72 unless demand and network engagement recover swiftly.
What would invalidate the bearish case?
A sustained shift in Spot Taker CVD to buy dominance, rising transaction counts and a notable increase in Open Interest would suggest renewed demand and reduce the likelihood of a $2.72 retest.
Key Takeaways
- Technical setup: Descending triangle with flat support at $2.72 favors downside risk.
- Market structure: Spot taker CVD and falling OI show sell-side control and lower participation.
- Actionable insight: Watch CVD, transaction count and OI for confirmation before positioning.
Conclusion
COINOTAG analysis shows XRP’s short-term outlook leans bearish as technical, on-chain and derivatives signals align toward downside pressure. The $2.72 level remains critical; a meaningful recovery requires stronger on-chain engagement and a reversal in Spot Taker CVD. Monitor the metrics listed above before adjusting exposure.