XRP has been consistently facing downward pressure and is having trouble getting back above $1.50, mirroring a general decrease in trading activity among many other cryptocurrencies. Over the past few weeks, price increases haven’t lasted, and the market seems sensitive, with fewer investors trading. While overall economic concerns and changes in where money is flowing are affecting the entire crypto market, data suggests XRP specifically is seeing a long-term drop in trading volume.
A new report from CryptoQuant shows increasing activity around XRP on the Binance exchange. They use a special index – the XRP Binance 30-Day Liquidity Index – to measure how much XRP is being traded compared to the total amount available. This index essentially tracks how quickly XRP is bought and sold on the exchange over a 30-day period, giving a good picture of its trading activity.
Recent data shows that XRP trading volume has decreased to about 7.02 billion over the last month. At the same time, its liquidity has dropped to around 0.097, which is very low compared to previous highs.
The drop in trading volume combined with decreasing market liquidity indicates a significant change in how the market is behaving. This suggests fewer people are actively trading, even though the price is trying to hold steady at important support levels.
XRP Liquidity Collapse Signals Cooling Market Participation
The report details how XRP liquidity on Binance grew significantly between 2022 and 2024. The 30-day liquidity index increased sharply, even going above 3, as monthly trading volume climbed to between 180 and 240 billion XRP. This surge in activity, driven by speculation and fast-paced trading, created a strong and liquid market on the platform.
Things began to shift in 2025. Throughout the year, the rate at which people bought and sold XRP started to decrease noticeably, and the amount of XRP readily available for trading dropped below a healthy level, eventually reaching a very low point. This decrease indicates that trading has slowed down considerably compared to the amount of XRP currently held on the exchange.
A drop in the liquidity index doesn’t necessarily mean prices will immediately fall. It simply shows that coins are changing hands less often on the platform. When fewer coins are actively being traded, market activity slows down and trading volume decreases.
When there isn’t much trading activity, even small changes in buying or selling can cause big price swings. If trading volume for XRP increases, its price could change quickly in the short term.
Price Struggles Below Key Moving Averages
Looking at the XRP price chart over the past three days, it’s clear the price has been steadily falling after failing to break through the $3.30–$3.50 range, which was a high point in the previous cycle. The price is making lower highs and lower lows, indicating a consistent downward trend that started around the middle of 2025.
XRP is currently trading around $1.41 and is below both its 50-day and 100-day moving averages, which are both falling. This indicates continued selling pressure and suggests that the price isn’t gaining much upward momentum. The 200-day moving average, around $1.90 to $2.00, used to support the price when it was rising, but now acts as a barrier to further gains.
In early February, a quick price drop briefly fell to around $1.10 before buyers caused a bounce. Since then, the price hasn’t continued to rise strongly, indicating this recovery is likely a temporary correction and not the beginning of a sustained upward trend.
Currently, XRP appears to have strong support around $1.30 to $1.35. If the price falls below this level, it could drop further, potentially reaching $1.00. However, to reverse the current downward trend, XRP needs to rise and break above the $1.80 to $2.00 range.
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2026-03-05 09:12