XRP’s price action has been deceptively calm. While the token continues to hover near the psychologically important $2 level, the surface stability masks a market struggling with waning conviction.
In the crypto world, price alone rarely tells the full story. Liquidity, leverage, and participation often move first, quietly reshaping the trend before the chart reacts. Those deeper signals are now flashing warnings that traders can no longer afford to ignore.
Jungle Inc Crypto News cites CoinTelegraph market data, suggesting XRP’s trading structure has weakened significantly. The concern is not driven by emotion or headline fear, but by measurable declines in demand across derivatives, spot participation, and wallet activity. Together, these indicators suggest XRP has entered a pronounced risk-off phase.
🚨 COINTELEGRAPH: XRP Trader Demand Has Collapsed: Is $1 Next?
XRP is holding near $2, but the data underneath is deteriorating fast.
Here’s what the market is telling us:
• XRP futures taker buy volume on Binance is down 96% since July
• Estimated Leverage Ratio has fallen… pic.twitter.com/VaipToqQRN— Jungle Inc Crypto News (@jungleincxrp) December 17, 2025
Futures Activity Signals Trader Retreat
One of the clearest signs of fading interest is visible in XRP futures markets. Binance data shows that futures taker buy volume has dropped by roughly 96% since July.
This metric tracks aggressive buying, typically associated with traders confident enough to enter positions at market price. Such a steep decline indicates that bullish traders have largely stepped aside, removing a key source of momentum.
With no buyers stepping in, price rallies struggle to sustain themselves. Even modest selling pressure can begin to dominate when buyers are unwilling to step in aggressively.
Leverage Dries Up Across the Market
Leverage often fuels short-term price expansion in crypto cycles. For XRP, that fuel appears nearly exhausted. The Estimated Leverage Ratio has reportedly fallen to around 0.18, placing it among the lowest readings seen this cycle. This suggests traders are either unwilling or unable to deploy borrowed capital, reflecting heightened caution and reduced risk appetite.
Low leverage environments typically align with consolidation or downward drift, especially when spot demand is not strong enough to compensate.
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Wallet Data Confirms Broad-Based Weakness
On-chain behavior reinforces the same narrative. Data cited in CoinTelegraph coverage indicates that retail, mid-size, and large XRP wallets all recorded negative volume delta in December. In simple terms, more XRP was sold than bought across every major cohort of holders.
This alignment matters. When selling pressure spans from smaller traders to larger players, it becomes harder for the market to find a stable bid. The absence of accumulation signals reduces the probability of a durable bounce.
Why ETF Optimism Has Not Helped
Despite ongoing optimism around XRP-related exchange-traded products, trader engagement has not returned. This disconnect highlights a key market truth: narratives alone cannot replace liquidity. Structural demand must appear in the data before price can follow.
As CoinTelegraph data suggests, markets move on structure, not hope. Until leverage rebuilds and buying pressure returns, optimism remains largely theoretical.
Is $1 Back in Focus?
With XRP holding just below $2, the level has become a critical line of defense. A clean break below it would expose lower liquidity zones, where technical targets near $1 re-enter the conversation. This is not a prediction, but a reflection of the current market structure.
For now, XRP remains afloat. If trader demand doesn’t pick up, the price might drop to match the weak underlying data.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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