XRP remained under sustained pressure as it struggled to regain the $1.50 level, reflecting a broader slowdown in market participation in several major altcoins. In recent weeks, price action has lacked momentum and proved short-term retracement as liquidity conditions remain volatile and investor activity continues to decline. While macro uncertainty and fluctuating capital flows have weighed on the broader crypto market, on-chain metrics show that XRP has also experienced a structural decline in trading activity.
CryptoQuant’s latest report highlights this trend through the 30-day Binance XRP Liquidity Index, a metric designed to assess the level of activity on the platform relative to supply of transactions. The indicator compares the 30-day turnover rate with the total supply and provides a clear picture of how actively traded assets are in the exchange’s ecosystem.
According to the latest data, the circulation rate has decreased to about 7.02 billion XRP in the last month. At the same time, the liquidity index fell to around 0.097 – a level that is near historical lows compared to the market’s previous highs.
This combination of reduced turnover and weakened liquidity indicates a significant structural change in market dynamics, which has cooled significantly even as the company attempts to stabilize the price near key support levels.
XRP’s liquidity collapse signals cooling market participation
The report contextualizes the evolution of XRP liquidity on Binance by showing a strong expansion phase between 2022 and 2024. During this period, the 30-day liquidity index rose and sometimes exceeded the reading of 3. This speed coincided with a significant increase in turnover, which amounted to X10 billion in monthly trade.802. Such levels reflected a highly active environment where speculative participation and high transaction speeds supported deep liquidity on the platform.
These conditions have changed during 2025. As the year progressed, the rate of turnover slowed significantly and the liquidity index fell below the neutral threshold of 1 before gradually falling to its current reading of near zero. This decline indicates that trading activity has significantly decreased relative to the available supply of XRP on the exchange.
Structurally, a drop in the liquidity index does not automatically put immediate downward pressure on prices. Instead, it shows that the supply speed within the platform has decreased. When fewer coins are actively circulating in the trading stream, the market may enter periods of reduced participation and lower turnover.
However, low liquidity environments often make price action more sensitive to sudden capital movements. In these conditions, the revival of circulation can quickly change the dynamics of the short-term price of XRP.
Prices are struggling below major moving averages
For 3 days, XRP remains locked in a clear corrective structure after a sharp rejection from the $3.30-$3.50 zone at the peak of the previous session. The chart shows a continuous sequence of highs and lows, confirming that the momentum has shifted firmly to the downside since mid-2025.
Currently trading near $1.41, XRP is well below the 50-period (blue) and 100-period (green) moving averages, both of which are trending down. This alignment reflects sustained low pressure and indicates that medium-term momentum remains weak. The 200-period moving average (red), located around the $1.90-$2.00 zone, has now crossed into a key resistance level after previously acting as structural support during the earlier uptrend.
A sharp liquidation pilot seen in early February pushed the price to the $1.10 range before buyers came in and triggered a reactive pullback. However, subsequent price action lacked follow-through, suggesting that the recovery is corrective rather than the start of a new uptrend.
From a structural perspective, the $1.30-$1.35 area is now immediate support. A break below this zone could expose XRP to a further decline to the $1.00 psychological level. Conversely, a retracement of the $1.80-$2.00 range is needed to counter the broader downtrend.
Featured image from ChatGPT, chart from TradingView.com
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