XRP is currently trading at approximately $1.11 as of July 11, reflecting a slight intraday increase of 0.49%. However, it remains below its critical moving averages, facing pressure from the latest figures that reveal the first weekly outflow from exchange-traded funds (ETFs) since May, a trend that may impact its demand significantly.
According to data from SoSoValue, the XRP spot ETFs experienced a net withdrawal of $7.18 million during the week that ended on July 10. This marks a stark contrast to the nine previous weeks, which collectively saw around $196 million pouring into the market. Such a swift reversal is particularly concerning as the derivatives market has been shrinking, leading to increasing uncertainty.
Understanding the Market Dynamics
Data from Binance indicates a significant drop in open interest for XRP, which fell from over $500 million in mid-June to only $399 million by July 10. Alarmingly, there was also a 94% increase in long liquidations week-over-week. These trends show a market that is deleveraging rapidly and indicates a cautious atmosphere for investors.
In a recent analysis, CryptoOnchain highlighted an unusual spike in XRP movement on Binance, where inflows peaked at 64.9 million XRP against outflows of 49.2 million on July 7. This suggests a strategic repositioning of capital rather than a robust market confidence. The combination of falling open interest and rising long liquidations create a precarious environment for traders still holding on.
Network Activity Indicates Caution
On-chain metrics further illustrate the careful state of XRP's environment. Santiment reported that the XRP Ledger recorded only 25,350 active wallets recently, marking one of the lowest daily figures for 2026. Additionally, the creation of new wallets has hit a lull, indicating that market participants may be hesitant to enter.
As XRP continues to navigate through this challenging landscape, its future will likely hinge on broader market conditions and the response from the ETF sector. Investors remain watchful, as shifting dynamics could shape the trajectory of this cryptocurrency.
This material is informational and should not be considered financial advice.
