XRP continues to show signs of a weakening market structure, with the latest CryptoQuant analysis indicating that sellers remain firmly in control as investor participation continues to fade.
The analytics platform reported that XRP’s Open Interest has fallen to $350.6 million, one of its lowest levels in recent months. The decline suggests traders are closing futures positions and reducing leverage, reflecting a more cautious market environment.
Weak Demand Keeps Sellers in Control
While falling Open Interest can sometimes signal a healthy reset by removing excessive leverage, CryptoQuant believes that is not the case this time because capital is also flowing out of the broader XRP market.
According to the firm, the decline extends beyond derivatives trading, pointing to a shortage of fresh capital entering the asset. As existing traders exit their positions without being replaced by new buyers, overall market participation continues to weaken.
On chain metrics also offer little indication of an imminent recovery. XRP’s Network Value to Transactions (NVT) ratio remains elevated at 162.86, suggesting that network activity has yet to grow enough to support the asset’s current valuation.
CryptoQuant said the combination of declining Open Interest and a persistently high NVT ratio reflects deteriorating market conditions. The firm added that investor appetite for risk has fallen sharply, leaving market participants fatigued and giving sellers a clear advantage.
Institutional flows also remained negative. On July 8, US spot XRP ETFs recorded net outflows of $7.3 million, although the products have generally performed better than comparable Bitcoin and Ethereum funds.
Adoption Continues Despite Market Weakness
Although short term market sentiment remains subdued, XRP continues to strengthen its presence through real world adoption, particularly across Asia.
Earlier this week, Japan’s SBI VC Trade revealed that more companies are adding XRP alongside Bitcoin to their corporate treasury reserves and shareholder reward programs. XRP also remains one of the most actively traded digital assets in South Korea.
Ripple further expanded XRP’s visibility by securing the first cryptocurrency sponsorship of a major US college athletics program. Under the agreement, the University of Kansas Jayhawks will feature the XRP logo on team jerseys beginning this fall.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic
