XRP is attempting to stabilize above the $1.90 threshold after experiencing a decline below the $2.00 mark, a drop that has sparked fresh uncertainty across the cryptocurrency landscape. As momentum weakens and volatility escalates, traders are closely monitoring whether this pullback signals a temporary reset or indicates the onset of a deeper downturn.
Market analysts are divided in their assessments. Some suggest that XRP is entering a bearish continuation phase, while others contend that the market may simply be clearing out leverage before a potential rebound. Regardless of the outlook, the upcoming trading sessions are poised to be decisive for determining short-term direction.
A report from Arab Chain sheds light on the dynamics at play within Binance’s XRP exchange. Data reveals that the 30-day correlation between price movements and Cumulative Volume Delta (CVD) is currently at 0.61, indicating a moderate to strong positive relationship between XRP’s price action and trading volume. This suggests that recent oscillations in XRP’s price are not merely coincidental but are anchored in actual trading activity.
This correlation is significant, as a consistent link between price and CVD suggests that the market is structurally aligned. Such alignment reinforces the notion of trend confirmation rather than representing a mere bounce in price. For XRP, this correlation could serve as a pivotal indicator as bulls strive to defend the $1.90 support level.
XRP’s CVD Confirmation Score Shows Base-Building, Not Capitulation
Arab Chain explains that while the correlation remains positive over the past 30 days, the latest CVD reading has not flipped to indicate net buying dominance; rather, it remains slightly negative, implying that the existing selling pressure has yet to subside. This subtlety is crucial.
Rather than presenting a straightforward “buy” or “sell” signal, the CVD acts as a confirmation score, assessing whether the price movement is underpinned by volume flows rather than offering just entry signals. This metric assists traders in evaluating the quality of the trend, providing insights into the underlying market behavior.
The true advantage of this analytical framework lies in its ability to detect divergences early. If XRP’s price attempts to rebound while the correlation weakens, or if CVD remains negative during price increases, these signals may indicate hidden weaknesses or suggest that upward movements are being sold into. Such imbalances tend to surface before sharp reversals, especially in climates characterized by thin liquidity and momentum-driven trades.
In the current context, however, the market is communicating a more balanced narrative. The sustained positive correlation, despite the recent price drop, points towards XRP potentially entering a base-building phase, with selling pressure being methodically absorbed rather than leading to aggressive distributions.
Trend Weakness Keeps Bulls On Defense
As it stands, XRP is trading around $1.91 on the three-day chart after failing to reclaim the $2.00 resistance level, leaving the market in a vulnerable short-term position. The trend has shown a steady downtrend characterized by lower highs following a peak of over $3.50 during the mid-2025 rally. After a pronounced decline in October, XRP has struggled to stabilize, with recent recovery efforts lacking momentum and gradually compressing into tighter price ranges.
From a trend analysis perspective, XRP remains constrained below significant moving averages. The downward-sloping blue average resides above the current price in the mid-$2 range, underscoring a bearish bias that hampers attempts for upward movement. Meanwhile, the green average is flattening, signifying overall weakened momentum across various time horizons. XRP is now testing critical support at the red long-term average, which has begun to rise toward its current pricing close to the $1.85–$1.90 zone.
Recent price action suggests an ongoing base-building process, but it remains premature to declare a definitive reversal at this stage. For bulls to regain control, they need to protect the current support area and make a concerted effort to reclaim levels between $2.00 and $2.10. Should XRP breach this rising long-term average, the potential for a drop towards $1.70—and possibly the mid-$1.50 vicinity—would increase, where previous demand had emerged.
