Two concerning headlines unsettled the cryptocurrency market in the last 24 hours. Nvidia CEO Jensen Huang acknowledged having an affair with a woman who is believed by US officials to be involved in espionage activities for China. Meanwhile, Marco Rubio indicated that negotiations with Iran have come to a standstill. Several leading assets experienced notable declines; XRP, for instance, decreased by nearly 7% in the last 24 hours. As the struggle near $1.1 persists, CryptoQuant’s Cumulative Volume Delta indicator on Binance registers at roughly -4.33 million XRP. The negative reading signifies that market sell orders are surpassing market buy orders, suggesting a bearish inclination in trading activity.
Sellers persist in executing a greater volume of market orders compared to buyers, resulting in increasingly evident pressure as XRP trades at comparatively low price levels. The 30-day average CVD is approximately 0.70, indicating a divergence from the current cumulative reading. Currently, the dynamics of trading activity are skewed toward sellers, suggesting that the crypto asset may continue to face downward pressure if this trend persists without sufficient buying demand to counteract it. However, CryptoQuant elucidated that a negative CVD reading does not necessarily indicate that traders are initiating new short positions.
Selling activity may also arise from traders who are closing existing positions or liquidating their holdings. Whale accumulation has not succeeded in bolstering XRP’s price. On the institutional front, spot XRP exchange-traded funds commenced November on a subdued note, following nearly $19 million in net inflows during October. While that was sufficient to maintain positive territory, it represented their second-worst month for inflows. The funds also did not contribute to any upward movement in XRP’s price throughout the month. Since the onset of November, there has been a notable decline in activity.
On the 2nd, investors withdrew nearly $530,000 from the funds, likely in response to the ongoing repercussions of the Binance hack on the markets. The subsequent four trading days yielded no new inflows or outflows, with SoSoValue reporting $0.00 in net flows on Tuesday, Wednesday, Thursday, and Friday. This marked the inaugural instance where the XRP ETFs experienced four successive days devoid of reportable activity since August.
