XRP CVD data shows $1.94B in trades but sellers lead

Strong link between XRP price and trade flow

At press time, XRP was trading near $1.18. Over the past 24 hours, trading volume reached $1.94 billion. Although the price dipped 2.84% in the same timeframe, XRP still posted a 7.78% gain across the last week.

The 30-day price-to-CVD correlation sits at a strong 0.81, highlighting a robust connection between market price movements and actual trading activity. In other words, recent XRP price shifts are seen as the result of direct supply and demand dynamics, rather than being driven by weak liquidity.

Quick guide: CVD measures the difference between aggressive buy and sell orders over a given period. A negative reading indicates that selling pressure dominates the market.

The parallel move of CVD and price in XRP demonstrates that the recent volatility directly reflects shifts in the supply-demand balance.

The persistence of negative CVD values, despite the price holding around $1.18, suggests that the distribution trend is still in play and may hinder a swift recovery in the short term. If the CVD moves back into positive territory, it could signal a notable return of buyer interest.

Technical signals suggest limited recovery

On the daily chart, XRP has been attempting a rebound after a sharp decline in June. The price dropped from the $1.35 zone to as low as $1.08, then staged a corrective rally up to $1.23, before settling back near $1.18 on recent profit-taking.

Still, some technical indicators show signs of improvement. The Relative Strength Index (RSI) has climbed to 44.7 after dipping below the oversold threshold of 30, indicating that downward pressure may be fading and buyers are gradually returning.

The rise of the RSI to 44.7 confirms that selling pressure has lost some momentum compared to previous days.

Short-term prospects have also improved according to the MACD. The histogram turning positive and the MACD line approaching the signal line are considered hints of a potential trend reversal. The uptick in trading volume during the rebound suggests this may be more than just a weak technical bounce.

Nonetheless, the $1.25 to $1.30 range continues to represent stiff resistance for XRP. A break above this zone could strengthen the recovery, while failure to surpass it might prompt another test of the $1.10 support level.