XRP Could Face Further Downside Toward $2.72 as Sell-Side Pressure and On-Chain Activity Weakens

• Descending triangle with flat support near $2.72 indicates downside risk.

• Spot taker CVD shows sustained sell-side dominance, limiting bullish momentum.

• On-chain and derivatives metrics: transactions ~109K, network growth ~859, OI down 6.51% to 2.78B.

XRP technical outlook: descending triangle and sell-side CVD point to a possible retest of $2.72 — read the on-chain and derivatives analysis and key takeaways.

Is XRP’s chart signaling a deeper decline toward $2.72?

XRP currently trades inside a descending triangle, with lower highs compressing against a flat support near $2.72. Technical weakness combined with dominant sell-side cumulative volume delta (CVD) and softer on-chain and derivatives activity increases the probability of a retest of $2.72 in the near term.

How does Spot Taker CVD affect XRP price momentum?

The Spot Taker CVD is in “Taker Sell Dominant” territory, indicating net selling pressure from aggressive participants. Short-term bounces have failed to reverse the CVD trend, which suggests sellers retain control of momentum and limit sustained bullish recoveries.

Source: TradingView (image provided for visual context)

Can weakening on-chain and derivatives activity affect XRP’s stability?

On-chain metrics reveal a notable cooldown in network participation. Transaction count fell to ~109K and network growth dropped to ~859, indicating fewer active addresses and lower throughput on the XRP Ledger. This reduced participation tends to suppress organic demand and can amplify technical downtrends.

Source: CryptoQuant (data snapshot)

What do derivatives tell us about participation and risk?

Open Interest (OI) contracted by 6.51% to 2.78 billion, showing lower derivatives participation and fewer new directional bets. A falling OI alongside sell-side dominance often precedes trend continuation rather than reversal, though lower leverage can reduce the scale of forced liquidations.

Source: CryptoQuant (derivatives overview)

Summary table: Key on-chain & derivatives metrics

How to assess short-term risk for XRP?

1. Monitor Spot Taker CVD for changes from sell to neutral/buy dominance.
2. Watch transaction count and network growth for renewed on-chain engagement.
3. Track Open Interest for increasing participation that could fuel rallies.

Source: Santiment (on-chain snapshot)

Frequently Asked Questions

Will XRP fall to $2.72?

Current indicators favor a retest: a descending triangle, sell-side CVD, falling OI and cooled on-chain activity raise the probability of another move toward $2.72 unless demand and network engagement recover swiftly.

What would invalidate the bearish case?

A sustained shift in Spot Taker CVD to buy dominance, rising transaction counts and a notable increase in Open Interest would suggest renewed demand and reduce the likelihood of a $2.72 retest.

Key Takeaways

• Technical setup: Descending triangle with flat support at $2.72 favors downside risk.
• Market structure: Spot taker CVD and falling OI show sell-side control and lower participation.
• Actionable insight: Watch CVD, transaction count and OI for confirmation before positioning.

Conclusion

COINOTAG analysis shows XRP’s short-term outlook leans bearish as technical, on-chain and derivatives signals align toward downside pressure. The $2.72 level remains critical; a meaningful recovery requires stronger on-chain engagement and a reversal in Spot Taker CVD. Monitor the metrics listed above before adjusting exposure.