XRP's Breakout Faces Risks from Fading Spot Demand and Rising Leverage

XRP has broken above $1.15, its first meaningful bullish breakout since early May.

The rally is supported by improving DeFi activity and increasing whale accumulation, with larger holders having increased their holdings by 2.8% over the past five weeks.

However, a closer look at the data reveals some signs of concern: spot demand has cooled noticeably, with Bitwise's XRP ETF pulling in only $2.49 million in net inflows on Monday, and Upbit's weekly XRP trading volume falling 51% since April.

Rising leverage could also pose a risk to the current bull run, as derivatives traders become more aggressive and Binance XRP open interest has risen 5.9% to $423.8 million, pushing leverage ratios to recent highs.