The XRP continues to show signs of weakening, according to the latest analysis from CryptoQuant. Market indicators show reduced investor activity, capital outflows, and lower risk appetite, factors that continue to favor selling pressure on the cryptocurrency.
Among the main data highlighted is the drop in Open Interest of XRP futures contracts. The indicator fell to US$ 350,6 million, one of the lowest levels recorded in recent months, indicating that many investors are closing positions and reducing the use of leverage.
Drop in Open Interest indicates capital outflows
At times, the reduction in Open Interest may represent a healthy market cleanup, eliminating excessively leveraged positions before a new rally. However, CryptoQuant believes that this is not the current scenario.
According to the company, the decline in Open Interest is being accompanied by a broader outflow of funds. Instead of new investors entering, the market is seeing positions being closed without capital replacement, reducing the overall participation of buyers.
This combination shows a loss of interest in the asset in the short term and helps explain XRP's difficulty in regaining strength.
On-chain data reinforces the negative outlook
In addition to the derivatives market, on-chain indicators also point to a slowdown in activity.
The NVT (Network Value to Transactions) remains elevated at 162,86, suggesting that transaction growth on the network still does not keep pace with XRP's current market valuation. In practice, this indicates that blockchain usage has not increased at the same speed as the asset's appreciation.
For CryptoQuant, the combination of declining Open Interest and elevated NVT presents a consistent picture of weakening market conditions.
The company adds that investors' risk appetite has decreased significantly, while many participants appear to be reducing exposure to XRP, leaving the market more favorable to sellers.
XRP ETFs record outflows in the United States
The movement was also observed among institutional investors.
Spot XRP ETFs traded in the United States recorded net outflows of US$ 7,3 million on July 8. Even so, these funds continue to show relatively better performance than equivalent products based on Bitcoin and Ethereum during the same period.
XRP adoption continues to grow in Asia
Despite the weakness observed in market indicators, XRP adoption continues to advance in important Asian markets.
In Japan, SBI VC Trade reported this week that a growing number of companies are adding XRP and Bitcoin to corporate reserves and benefit programs intended for shareholders.
Additionally, XRP remains among the most traded cryptocurrencies in South Korea, maintaining a strong presence on the country's main exchanges.
Ripple expands cryptocurrency visibility in the US
While the market follows the technical indicators, Ripple also expanded the brand's exposure.
The company closed the first sponsorship involving a cryptocurrency in a major university sports program in the United States. Under the agreement, the University of Kansas football team, the Jayhawks, will begin displaying the XRP logo on their uniforms during games in the next fall season.
The initiative expands the cryptocurrency's visibility outside the financial market and reinforces Ripple's strategy of expanding brand recognition across different segments, even during a period marked by lower investor participation in the XRP market.