XRP (XRP) dropped to $1.90 on Friday after a 2% decline as data from CryptoQuant showed the token's price movements remain tied to trading volume, though accumulated selling pressure has yet to shift toward consistent net buying.
What Happened: Selling Pressure Persists
The analytics firm reported that Binance's XRP market shows a 30-day price-Cumulative Volume Delta correlation of approximately 0.61, indicating a moderate to strong positive relationship between price movements and net volume flows.
CryptoQuant said such correlation "is generally interpreted as confirmation of a structural trend" because it reflects internal consistency between price and volume rather than a short-term technical reversal. The latest CVD reading remains in negative territory.
This means accumulated selling pressure has not pivoted into steady net buying dominance. The firm added that the continued presence of a positive correlation despite price softness suggests the asset may be undergoing "a base-building process rather than experiencing aggressive or active distribution."
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Why It Matters: Fear Often Precedes Rallies
Santiment found that XRP has entered "Extreme Fear" based on social data, as retail traders turned pessimistic following a double-digit drop from its Jan. 5 high. The analytics firm noted that heavy bearish commentary has often been followed by rallies, adding that "major FUD" is "usually a rally starter."
Analyst Ali Martinez identified $1.78 as a crucial support zone. If the asset holds above that level, the next major resistance areas are around $1.97 and $2.00.
Institutional demand remained visible, though modest. Data compiled by SoSoValue showed spot XRP ETFs attracted $2.09 million in net inflows on Jan. 22.
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