XRP has been consolidating since early February, building a base that has tested the patience of bulls. A recent report by CryptoQuant reveals a divergence between XRP's spot and futures markets.
While spot buying has strengthened continuously, with an increase in real, underlying demand over three weeks, the futures market on Binance is showing net short positioning, creating the appearance of a lack of conviction.
However, the analysis argues that this appearance is misleading. The futures weakness does not reflect genuine bearish conviction, but rather a derivatives reset, clearing excess leverage accumulated during previous rallies.
The report describes a market conducting internal cleanup before a potential directional move, with spot buyers absorbing supply on one side and derivatives flushing excess leverage on the other.