XRP is experiencing a recovery near $1.20 driven primarily by spot market activity rather than derivatives trading. According to reports from AMBCrypto, the clearest indication of this shift is evident in the CEX Estimated Spot CVD, which climbed to $267.4 million - the highest level since mid-May. This represents a dramatic turnaround from mid-April when the metric was approximately -$177 million, indicating a complete reversal in spot market sentiment.
While spot buyers are providing support, the perpetual market presents a contrasting picture. As reported by AMBCrypto, Binance Perpetual CVD fell to a record -$792.5 million, significantly lower than the -$218 million recorded in mid-May. This divergence suggests that XRP has been rising despite heavy perp selling activity, creating potential instability in the current price movement.
The market dynamics are further complicated by elevated leverage and supply conditions. According to AMBCrypto, Binance's estimated leverage ratio reached 0.187, approaching the highest level seen during this period. Simultaneously, Binance's exchange supply ratio fell to nearly 0.0268, suggesting there may be sufficient supply available for selling pressure. This combination of high leverage and reduced supply availability creates potential volatility risks.
The current market structure presents mixed signals for XRP's near-term direction. As reported by AMBCrypto, while spot buyers demonstrate strong enough support to maintain price levels above $1.20, the heavy shorting activity in perpetual markets creates potential downside risks. The elevated leverage levels suggest that any weakness in buying strength could trigger rapid price reversals, indicating that XRP appears set for volatile trading conditions in the immediate term.
