Two worrying headlines have shaken the crypto market over the past day. Nvidia CEO Jensen Huang has admitted to having an affair with a woman suspected by U.S. officials of spying for China. Meanwhile, Marco Rubio said negotiations with Iran had stalled. Several leading assets suffered significant declines; XRP, for example, fell almost 7% in the last 24 hours.
As the fight around $1.1 continues, CryptoQuant’s Cumulative Volume Delta (CVD) indicator on Binance stands at around -4.33 million XRP.
Struggles for purchasing demand
The negative reading means market sell orders exceed market buy orders, indicating a bearish bias in trading activity. Sellers continue to execute more market orders than buyers, and the pressure is becoming more noticeable with XRP trading at relatively low price levels.
The 30-day average CVD stands at almost 0.70, creating a gap from the current cumulative reading. For now, the balance of trading activity favors sellers, and crypto assets could remain under pressure if this trend continues without sufficient buying demand to absorb it.
However, CryptoQuant explained that a negative CVD reading does not automatically mean traders are opening new short positions. Selling activity can also come from traders closing existing positions or liquidating their holdings.
Four-day influx drought
The accumulation of whales has also failed to support the price of XRP. On the institutional side, XRP spot exchange-traded funds started November on a weak note after attracting nearly $19 million in net inflows in October. Although this was enough to keep them in positive territory, it was the second worst month in terms of inflows. The funds also did not allow the price of XRP to make any gains during the month. Things have become even quieter since the beginning of November.
On the 2nd, investors withdrew nearly $530,000 from the funds, perhaps as markets continued to deal with the fallout from the Binance hack. The next four trading days brought no new inflows or outflows, with SoSoValue reporting $0.00 in net flows on Tuesday, Wednesday, Thursday and Friday. This was the first time XRP ETFs recorded four consecutive days without reportable activity since August.
Is Post XRP Facing More Downward Pressure? Binance CVD Reveals Sellers Still in Control appeared first on CryptoPotato.
About the Author
