XRP Market Structure Shifts Towards Cleaner Breakout Setup

XRP's price action has been influenced by the unwinding of leveraged positions, which has led to a decrease in volatility. According to CryptoQuant, the Leverage Ratio dropped sharply from 0.59 to 0.13, indicating that traders are reducing their risk exposure.

At the same time, Open Interest contracts declined by over 70% from previous peaks, suggesting a broad flush of speculative positions. This decrease in leverage may reduce the influence of forced liquidations on the price action.

The shift towards lower-risk structure is further supported by order flow data, which shows a reduction in speculative pressure and an increase in spot demand. The Spot CVD rose to 148.4 million, indicating that buyers are actively accumulating positions, while the Perpetual CVD was deeply negative, suggesting leveraged traders may be exiting or selling into strength.

As leverage continues to fade and spot demand strengthens, XRP's market structure is shifting towards a more organic setup, which may create a stronger base for sustained upside once momentum returns. This transition may also indicate that accumulation is absorbing supply, reducing volatility risk.