Rising Spot Demand Creates Volatility Risk for XRP

XRP has seen significant spot buying activity in recent days, reaching its strongest level since early June. This increase in spot demand is a sign of growing interest in XRP, and it highlights the widening gap between the spot and derivatives markets.

According to data from Binance, the perpetual cumulative volume delta for XRP has dropped to -$547M. This indicates that leveraged traders on the platform are increasing their bearish bets, creating a divergence between spot and derivatives markets.

The growing gap between spot and derivatives markets raises short-term volatility risk for XRP. As a result, crypto CEX derivatives flows remain mixed, with some traders taking advantage of the increased uncertainty to make trades.