Rising Spot Demand Meets Bearish Futures Market in XRP

Binance's XRP perpetual futures have turned more bearish, while spot buying has risen to its strongest level since June.

The cumulative volume delta (CVD) for spot trading on centralised exchanges stood at about $388.6 million as of July 23, indicating aggressive buying and selling across these platforms. This rise in CVD is seen as a signal that spot investors' buying pressure has strengthened.

However, the derivatives market shows a different trend. Binance's XRP perpetual futures CVD fell to about -$547.4 million on July 23, indicating that bearish positions using leverage have increased sharply.

CryptoQuant analyst Amr Taha noted that spot investors are stepping up direct buying of XRP, while futures traders are betting on a decline. The combination of rising open interest and deeply negative perpetual futures CVD suggests new leveraged short positions entering the market.