XRP’s internal structure looks intact on Binance; however, directional clarity remains absent as CVD fails to turn positive.
Ripple (XRP) slipped to $1.91 after a fresh decline of 2% on Friday. The market lacks strong conviction.
New data suggests that while XRP is not decoupling from volume flows, selling pressure has not yet fully transitioned into net buying dominance.
Missing Buying Power
According to CryptoQuant’s analysis, Binance’s XRP market shows that the current 30-day price-Cumulative Volume Delta (CVD) correlation stands at around 0.61. This is a moderate to strong positive relationship between price movements and net volume flows. It means that recent price action has remained closely in line with trading activity rather than becoming detached from underlying volume behavior.
CryptoQuant stated that such a correlation is generally interpreted as confirmation of a structural trend, as it reflects internal consistency between price and volume rather than a short-term technical reversal.
At the same time, the latest CVD reading remains in negative territory, which indicates that accumulated selling pressure has not yet pivoted into a phase of steady net buying dominance. This dual condition is what defines the indicator as a “confirmation score” instead of a direct trading signal, as it assesses the strength and coherence of the ongoing trend without offering explicit entry or exit points.
The indicator is particularly useful for identifying divergence, as a scenario where prices rise while the correlation weakens or negative CVD persists would point to emerging internal weakness. In the current setup, however, the continued presence of a positive correlation despite ongoing price softness means that the crypto asset may be undergoing a base-building process rather than experiencing aggressive or active distribution.
FUD Spikes, But ETFs Keep Buying
Despite XRP’s failure to push higher this week, Santiment found that XRP has entered “Extreme Fear” based on social data, as retail traders turned pessimistic after a double-digit drop from its January 5 high. The analytics firm said that heavy bearish commentary has often been followed by rallies, and prices have frequently moved opposite to retail expectations, while adding that “major FUD” is “usually a rally starter.”
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Meanwhile, analyst Ali Martinez identified key levels to watch. He said that $1.78 is a crucial support zone for XRP. If the asset holds above this level, the next major resistance areas are around $1.97 and $2.00.
Additionally, institutional demand remained visible, though modest, as spot XRP ETFs kept attracting fresh capital. Data compiled by SoSoValue showed that these funds saw $2.09 million in net inflows on January 22.
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