The Crypto Basic

XRP is moving into a period of “liquidity equilibrium,” according to new CryptoQuant data, as traders’ positions become more evenly balanced after recent price gains.

A CryptoQuant chart shows that XRP long and short liquidations have fallen to similarly low levels. At the same time, Binance funding rates are near neutral, suggesting that neither buyers nor sellers have a clear advantage right now.

This kind of balance often comes before a larger price move, meaning a breakout could happen soon, although the direction remains unclear.

Liquidations and Funding Rates Signal Market Balance

The latest data shows Binance long liquidations at roughly 103,055 XRP, while short liquidations across exchanges stand at about 121,820 XRP. Funding rates have also flattened around zero, indicating that traders are not taking on heavily leveraged positions in either direction.

These conditions often appear after periods of high volatility. During such periods, excessive leverage is flushed from the market as traders wait for the next major catalyst.

Notably, the current equilibrium does not point to an immediate bullish or bearish move. Instead, it suggests the market is becoming compressed. A stronger move could follow once fresh buying or selling pressure enters the market.

Whale Activity Slows as Exchange Inflows Drop

Meanwhile, large XRP holders (“whales”) are sending fewer tokens to Binance, according to additional data from CryptoQuant.

Analyst Arab Chain reported that XRP whale inflows to Binance over the past 30 days have fallen to about 947 million XRP, the lowest level in two months. That is down 34.4% from around 1.45 billion XRP in late June.

Large transfers to exchanges can sometimes signal that whales are preparing to sell. The decline suggests whales are moving fewer tokens to Binance, which could mean reduced selling pressure or that they are keeping their XRP in private wallets.

If this trend continues and demand improves, it could support XRP’s price.

Derivatives Grow While Spot Trading Slows

Another CryptoQuant analyst, CryptoOnchain, pointed out that XRP’s futures and spot markets are moving in different directions.

Spot trading activity has fallen sharply over the past week, with exchange inflows down 99.1%, outflows down 99%, and Binance deposit activity down 97.6% compared with the weekly average.

At the same time, traders are increasing their futures positions. XRP open interest has risen 5.9% to 423.8 million, while leverage levels have reached their highest point in the recent period.

Despite this increase, XRP has remained mostly flat, trading between $1.086 and $1.113 for nearly two weeks, while trading volume has fallen 54.6% from the previous week.

CryptoOnchain said this suggests traders are gradually building positions rather than making aggressive bets. Neutral funding rates also indicate that traders are waiting for a major market catalyst instead of placing strong bets on either a price increase or decline.

Outlook

Overall, XRP’s market appears to be in a waiting phase. Buying and selling pressure are balanced, whale activity has slowed, spot trading has weakened, and futures positions are gradually building.

XRP was trading at $1.13 at the time of writing, up 4% over the past 24 hours, 6.2% over the past week, and 7.33% over the past month. However, it remains down 37% year to date.

The current data does not clearly indicate whether XRP will move higher or lower next. Instead, it suggests traders are positioning for a larger move once a new market catalyst emerges.

XRP currently changes hands around the $1 psychological level, with two well-known bullish chart patterns pointing to a possible trend reversal. 

Now trading for $1.08, the token has spent the past several weeks moving within a narrowing price range, which has allowed a falling wedge and an inverse head and shoulders pattern to form on the daily chart.

The current situation suggests that XRP could soon reach a turning point. As the price continues to tighten between key support and resistance levels, a larger move could ensue once it breaks out of the current range.

XRP Falling Wedge Shows Selling Pressure Is Fading

One of the main patterns on XRP’s chart is the falling wedge, which appears near the end of a downward trend. Notably, this pattern forms when price moves between two downward-sloping trendlines, with the lower trendline falling faster than the upper one. 

As the space between the two lines becomes smaller, sellers begin to lose strength while buyers continue stepping in.

XRP has been trading in a tight range between $1.08 and $1.10, staying within these converging trendlines after a long period of decline. The narrowing price action suggests that the current consolidation phase may soon come to an end.

XRP Forming Inverse Head and Shoulders

Alongside the falling wedge, XRP has also developed an inverse head and shoulders pattern, another formation that precedes a reversal. 

The pattern consists of three consecutive lows, with the middle low dropping below the other two to form the head, while the two outer lows create the shoulders. In this pattern, a move above the neckline confirms the pattern.

XRP has built this structure over the past six weeks. The left shoulder formed at $1.05 on June 6, creating the first major low. 

The price later dropped to $1.008 on June 26, forming the head and marking the lowest point of the recent correction. Meanwhile, the right shoulder appeared at $1.0531 on July 13, almost matching the left shoulder.

Importantly, the neckline sits around $1.18, which also acted as resistance during XRP’s recovery attempt earlier this month. A solid move above this level would complete the pattern and confirm the case for a broader recovery.

As long as XRP remains above the $1.05 to $1.07 support range, the right shoulder stays intact and both bullish patterns remain valid. However, if the price falls below $1.05, the inverse head and shoulders pattern would lose its validity.

Key Resistance and Price Targets for XRP

On the upside, the $1.15 to $1.18 area remains the most important level to watch. A daily close above this range would confirm both the falling wedge breakout and the neckline break from the inverse head and shoulders. 

Even after a breakout, XRP still needs to overcome another resistance zone between $1.18 and $1.20, which stopped the previous rally. Buyers must clear this level before a larger upward move can develop.

If XRP breaks above the neckline, the inverse head and shoulders pattern points to an initial target between $1.25 and $1.35. This target comes from measuring the distance between the head at $1.008 and the neckline at $1.18, then adding that distance above the breakout point. 

A complete breakout from the falling wedge gives a wider target between $1.45 and $1.55, but reaching that range would depend on continued buying pressure and supportive conditions from the broader cryptocurrency market.

XRP dominance is completing a weekly MACD reset that previously preceded major rallies, with the current setup signaling a potential reversal.

The XRP dominance is printing one of the most interesting weekly chart setups seen in months. After nearly a year of steady decline, momentum indicators are approaching levels that have historically marked the beginning of major upside moves.

XRP Weekly MACD Reset Mirrors Previous Events

Currently, the XRP dominance sits at around 3.128%, down 2.5% in July. The trend follows a broader sideways trend, where the asset has lost 18% of its share of the total crypto market cap this year.

Meanwhile, a positive signal is emerging from the MACD on the weekly dominance chart. The indicator is having another full momentum reset, a pattern that has only appeared a handful of times in the past two years.

An accompanying chart shows that XRP has seen the MACD histogram bars move from red to green only three times since late 2024. The first in November 2024 led to a 350% surge in dominance from 1.24% to 5.58%.

The second was in July 2025. The reset aligned with a 16.5% XRP dominance rally to 5.52%. The latest reset occurred in early June when the MACD histogram started to form small green bars, signaling a momentum shift. 

Notably, each previous reset came after an extended period of weakness and preceded a sharp move higher in XRP’s share of the overall cryptocurrency market. The current setup is beginning to resemble those earlier momentum transitions.

First Major Signal After Prolonged Consolidation

An asset often starts a strong expansion after prolonged periods of consolidation and momentum resets. The longer an asset spends correcting and building a reliable pattern, the stronger the subsequent move becomes when buyers return.

That is what makes the current XRP dominance structure noteworthy. The technical indicator has spent months below the zero line and printing red bars. From a technical perspective, this type of extended consolidation can create favorable conditions for a powerful reversal if market sentiment improves.

The weekly MACD is now at levels that previously coincided with major turning points, suggesting the downside momentum that has dominated since July 2025 is beginning to fade.

XRP Dominance Eyes Rebound

If XRP dominance follows its historical behavior, the next move could be upward.

The previous two momentum resets led to significant upside moves that reclaimed a large portion of the preceding decline. The current setup suggests that another momentum shift could develop once the bullish MACD momentum strengthens.

While there are no certainties, the similarities between the current chart structure and previous cycle bottoms are becoming increasingly difficult to overlook.

Should the XRP dominance mirror the first event and rally 350%, it would mean controlling around 14% of the total crypto market cap, significantly impacting its price. However, mirroring the more modest 16.5% increase in July 2025 would take the current market dominance to 3.65%.