XRP Rally Fades as Derivatives Market Remains Skewed to Selling

XRP's recent price surge has shown signs of slowing down, according to derivatives market data. The taker buy-sell ratio on Binance stands at 0.92, indicating selling remains more active in derivatives trading.

Despite XRP rebounding from the low $1 range to near $1.70 and then pulling back to around $1.36, the price has not been backed by strong derivatives buying.

The market capitalization of XRP also moved similarly, jumping from about $63 billion to nearly $107 billion on Aug. 22, but later falling to around $85.2 billion.

XRP's recent rally was driven more by derivatives than spot trading, with futures open interest standing at $2.52 billion and 24-hour derivatives volume reaching $2.24 billion, compared to spot volume of only $386 million.