XRP’s mixed signals: Liquidity builds, but demand imbalance persists

Momentum across Ripple [XRP] appears to stall, even as its underlying ecosystem continues to expand.

The token traded near $1.35, holding an $83 billion market cap, yet returns remain at 4.2% monthly and -0.9% weekly. This disconnect emerges because buyers are not stepping in with enough conviction, even as fundamentals improve.

Liquidity remained present, with spot volume near $1.6 billion daily, yet this flow reflected rotation rather than accumulation. Beneath the surface, XRPL activity continued to expand, as its DeFi TVL holds over $46 million and stablecoin supply rose by 5% to $386 million.

This growth signals infrastructure relevance, yet it does not immediately translate into demand.

As a result, price stayed range-bound, since market participants acknowledged progress but hesitated to reprice XRP. Until stronger buying pressure emerges, this divergence keeps upside limited.

Negative premium signals fading institutional demand

That hesitation in XRP’s price now traces back to where demand is actually coming from. Earlier, the Coinbase premium stayed elevated around +0.04 to +0.05, while the price held near $1.35–$1.40, showing steady U.S. institutional support.

As momentum faded after the 23rd of March, the premium began to slide and has now flipped to around -0.036.

This shift shows Coinbase pricing falling below Binance, which signals that institutional buyers are stepping back while offshore flows take the lead.

As this imbalance builds, price loses upward traction because stronger capital is no longer absorbing supply. Until U.S. demand returns, this structure keeps XRP pressured, reinforcing the broader pattern of weak conviction despite improving fundamentals.