XRP is down, but its exchange activities suggest that traders are still willing to buy the asset despite the weak price move, signaling sustained demand in the Ripple-associated cryptocurrency.
As traders continue to show resilience, the XRP reserve across all supported exchanges has declined substantially as of Friday, March 20.
The data, showcased by crypto analytics platform Cryptoquant, shows that the amount of XRP currently sitting on all exchanges, including Binance, has dropped below the regular 2.81 million threshold, now sitting at 2,802,300,000.
XRP still in demand
While the declining reserve is largely attributable to the recent rally seen across the crypto market, which pushed XRP to reclaiming levels seen earlier this year, the asset is back in red territory.
However, it appears that XRP still holds momentum despite the negative price flip, hence, selling pressure still remains on the low side, as indicated in the declining exchange reserve.
Following sustained bullish momentum, market watchers are confident that the asset might resume its rally soon as $2 becomes the new target.
Nonetheless, data from CoinMarketCap shows that XRP is trading at $1.44 as of writing time, showing a mild decrease of 1.07% over the last 24 hours.
XRP derivatives market loses momentum
Despite the bullish signal flashed by the XRP exchange metric, the negative trend seen in its price move has extended to its derivatives market.
As of the same period, XRP futures traders have placed fewer bets on the asset, as only 1.74 billion XRP are currently committed in active contracts.
This has seen the asset’s open interest decline by 4.12% over the last 24 hours, as futures traders appear to be acting cautiously amid the sudden price switch.
