XRP’s price action has remained choppy this week. It briefly fell below $1 before a modest recovery. But that strength faded quickly, and it has since settled near $1.01.

New data suggests that selling pressure on the token has reached its highest level since May on Binance.

Downside Risk Grows

According to CryptoQuant’s latest findings, the exchange’s Taker Buy/Sell Ratio has fallen sharply to around 0.86, its lowest reading since last May. A reading below 1 means traders are executing more sell orders than buy orders, which indicates clear selling pressure in the derivatives market.

The ratio has stayed below 1 for most of the recent period. There have been brief moves above that level, but they failed to develop into a lasting trend. XRP has also continued to fall from the highs recorded in previous months. This adds to signs of weak spot demand and speculative interest.

However, the low ratio does not mean XRP must continue declining. It mainly shows a temporary imbalance between buyers and sellers in the market. If the ratio moves even lower, downward pressure on the asset could increase. On the other hand, if the ratio moves back above 1 and holds, buying interest could improve. This would be more significant if it came with a stronger price and higher buying volume.

But CryptoPatel also flagged high open interest as another warning sign. XRP futures OI stands at 435.1 million units, above the 30-day average of 403.6 million units, which gives it a Z-score of +1.20σ. The analyst explained that the combination of price weakness and elevated OI essentially means that leverage remains stacked in the market. If the asset falls further, the setup could turn into a liquidation cascade.

Meanwhile, CasiTrades expects XRP to see a deeper pullback before finding a stronger floor. The analyst identified $0.94 as a level where the token could find some relief, but $0.87 remains the bigger downside target.

Whales Take a Different View

Short-term traders may be leaning bearish, but whale wallets have been moving in the opposite direction. Earlier this week, Santiment found that the number of wallets holding at least 1 million XRP has risen by 32 over the past three months, even as the asset’s market cap fell 29%.

The analytics firm said this points to stronger holders absorbing the recent panic as “patience replaces price-driven hype” – a shift that could make future volatility more “interesting” for the bulls.

Source: CryptoPotato