XRP Shows Relative Strength Amid Market Decline

In a market where most tokens are experiencing significant declines, XRP has shown relative strength compared to its peers. According to data from CoinGecko, the altcoin's price fell by approximately 9% over the past week, while Bitcoin (BTC) dropped around 11%, Ethereum (ETH) lost 16%, and Solana (SOL) slid close to 17%. This anomaly in the market has sparked interest among investors and analysts.

The analysis of XRP's price movement reveals that informed traders continued to buy into the decline. The Smart Money Index, which tracks whether informed traders buy or sell at key points in the session, moved in the opposite direction from the price. Between February 6 and early June, the XRP price trended lower, but the Smart Money Index trended higher.

This buying behavior by smart money investors is a significant factor in XRP's relative strength. Additionally, data from Glassnode shows that net exchange position change, which tracks coins moving in and out of exchanges, fell sharply during the same period. This indicates that holders moved their coins to cold storage rather than selling, which tightens the available supply.

The setup could also power a rebound for XRP. On Bybit's XRP perpetual market, 30-day short liquidation leverage sits near $134 million against roughly $80 million in longs. This imbalance means an upside move could force shorts to cover, triggering a short squeeze where forced buying speeds up a rally.