XRP Struggles to Hold $1 as New Bearish Positions and Declining Whale Deposits Weigh on Price

XRP's inability to hold above $1 is puzzling investors and analysts alike. Binance data offers some clues as to what might be driving this trend.

The exchange's XRP open interest has climbed by 28.6% in just two weeks, reaching a high of $232.7 million on August 17. This marks the highest reading since June 2022 and reverses a sharp contraction that saw open interest hit a three-month low in July.

However, the rise in open interest is being driven by new bearish positions rather than existing longs closing, according to analyst Amr Taha. The perpetual Cumulative Volume Delta (CVD) on Binance has fallen to negative $463.2 million, indicating aggressive sell-side execution and expanding positions.

Whale deposits to the exchange have also collapsed to their lowest level since 2021, with a three-month average of just $61 million. While netflows remain positive, this is a clear indication that the market is experiencing sell-side exhaustion, as analyst Darkfost notes.