What to Know:
- XRP price weakness continues as sellers dominate key market indicators.
- Its market capitalization decline signals weakening investor confidence and capital outflows.
- Ichimoku Cloud and futures data reinforce XRP’s bearish outlook ahead.
CryptoQuant analyst PelinayPA has outlined why XRP continues losing market value despite several buying attempts in recent weeks. According to the analyst, declining market capitalization, a bearish Ichimoku Cloud, and a weak Taker Buy/Sell Ratio all point to sellers maintaining control.
XRP Price Continues to Weaken
XRP is trading around $1.05 after extending its downward trend throughout June, as CryptoQuant’s latest chart shows the cryptocurrency forming a series of lower lows, signaling that buyers have struggled to regain momentum despite repeated recovery attempts.
Every rebound has been followed by renewed selling pressure, preventing XRP from establishing a stronger price structure. Consequently, market participants have shifted their attention to the psychological $1.00 support level, which now represents the most important price zone in the short term.
A move below that level could increase downside pressure as more traders react to the weakening trend. Meanwhile, holding above $1.00 may provide buyers with another opportunity to stabilize prices and challenge the current bearish momentum.
Beyond the price decline, the overall market structure continues to reflect limited investor confidence. Capital inflows remain weak, while selling activity continues to outweigh demand across multiple indicators.
Declining Market Value Reflects Weak Investor Demand
CryptoQuant data shows XRP’s market capitalization falling from above $300 billion to roughly $105 billion. According to PelinayPA, the decline suggests that fresh capital has not entered the market in sufficient volumes, while existing investors continue to reduce exposure.
Since XRP’s circulating supply has remained relatively stable, the falling market capitalization primarily reflects declining prices and weakening demand. Moreover, the steady contraction indicates that buyers have not generated enough momentum to reverse the broader trend.
Also Read: BlackRock Bitcoin ETF Sees $300M Outflows as Institutions Rotate Capital in June
Source: CrytoQuant
The futures market also paints a cautious picture. XRP’s Taker Buy/Sell Ratio currently stands at 0.97, showing that sellers still maintain a slight advantage. Although the ratio briefly moved above 1.0 several times, those buying periods failed to produce meaningful price appreciation.
Instead, sellers continued to absorb incoming demand, preventing buyers from gaining lasting control. This pattern often signals that larger market participants remain willing to sell into short-term rallies rather than support higher prices.
What Next?
Technical indicators continue to support the bearish outlook as XRP remains below the Ichimoku Cloud, a widely followed indicator that traders use to identify prevailing market trends and momentum.
Trading below the cloud generally indicates that sellers remain in control while resistance limits recovery attempts. Additionally, the cloud continues to project negative momentum, reinforcing the weakness already visible in XRP’s price action and market capitalization. Together, these indicators suggest that demand has yet to recover despite several buying attempts during recent weeks.
CryptoQuant’s analysis presents a consistent picture across price action, market capitalization, derivatives activity, and technical indicators. Until XRP attracts stronger capital inflows, reclaims the Ichimoku Cloud, and establishes higher highs and higher lows, the broader market structure is likely to remain under pressure.
Current on-chain and technical indicators suggest XRP continues to lose market value as sellers retain control across both spot and futures markets. Unless buying demand strengthens and the $1.00 support level holds, the bearish trend is likely to remain intact in the near term.
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