XRP's Price Decline May Be Less Ominous Than It Seems

XRP's price has been declining due to selling pressure, but data suggests that traders are cutting their leveraged positions at a faster rate than the asset is falling.

The XRP perpetual and spot CVDs have dropped significantly, with the estimated Spot CVD across major centralized exchanges plummeting from -$111 million to -$2.1 billion over the past month.

This represents a nearly $2 billion change toward stronger spot selling, indicating that not only leveraged traders but also spot-market participants are contributing to the decline.

While this may seem ominous, a smaller derivatives market could limit the amount of leverage available to drive another sharp decline, and a lower open-interest base means fewer highly leveraged long positions remain vulnerable to forced liquidations if XRP falls again.