Ripple [XRP]’s recent performance has been a major concern for investors, as the asset continues to surge while activity, particularly in the perpetual market, shows a bearish presence.
The major concern stems from the growing Spot Cumulative Volume Delta, which has shown an excessive short-selling volume. Between the 16th and the 27th of September, the CVD grew from -$2.27 billion to roughly -$2.70 billion.
This suggested that the CVD had expanded by $430 million within that period. Binance traders’ activity also fed into the CVD, as exchange volume moved from -$1.0 billion to roughly -$1.2 billion. Within that period, the price has returned roughly 5.00% in value.
Spot accumulation helps XRP absorb selling
One of the major factors that has contributed to the price maintaining an upward motion in the past couple of days against the selling volume in the perpetual market has been Spot investors.
According to CoinGlass, the Spot netflow, which tracks Spot investors’ movement of an asset into and out of exchanges, suggests there’s been more of the latter recently.
More outflow often suggests that investors are moving capital into private wallets for long-term holding.
In the past 24 hours, that capital has soared to -$17.11 million, and in the last seven days, the figures stood at -$60.33 million.
Continued Spot accumulation against the selling volume helps keep the price intact, as it often absorbs the majority of the selling pressure that comes from the perpetual market.
Positive Funding Rate supports long positions
The Funding Rate has been another factor that has helped maintain the price outlook. From the 16th of September to press time, the Funding Rate has stayed positive.
It suggests the majority of the capital in the perpetual market is positioned in favor of a long move, as the Funding Rate within that period grew from 0.0062 to 0.0081.
Overall, XRP is likely to maintain the bullish outlook if there is continued Spot accumulation alongside the Funding Rate remaining positive without going through an overheating period.
Final Summary
- XRP maintains its upward trend as Spot netflow shows continued accumulation despite persistent selling in the perpetual market.
- Positive Funding Rate supports long positioning, but overheating could put XRP’s bullish outlook at risk.
