XRP, Binance Order Book 'Empty'... "Not a Loss of Interest, but Whales Locking Up Supply?"

▲ XRP/ChatGPT generated image

An analysis has emerged indicating that XRP's market depth has significantly decreased on Binance, the world's largest cryptocurrency exchange.

U.Today reported on May 26 (local time), citing a recent report from on-chain analytics platform CryptoQuant, that XRP's 30-day liquidity index dropped to 0.043, marking its lowest level in six years since January 2020. This sharp decline in liquidity occurred while XRP's price was consolidating around $1.34.

Analysts diagnose this movement not as a decline in interest in the asset, but rather as a restructuring of its ownership. They explain that large holders are isolating coins from the retail spot market and systematically moving their holdings to over-the-counter (OTC) desks or regulated funds. The biggest problem is that with the decreasing order density in the exchange's order book, the market has become extremely vulnerable to a single large transaction. In the current structure, even a medium-sized market order could trigger shocking price fluctuations in the range of 4% to 5%.

CryptoQuant experts warned that historically, strong price trends have formed after periods of severe liquidity drought. They analyze that a sudden surge in trading activity, combined with a supply shortage on exchanges, could lead to explosive price movements. Currently, XRP's price indicators remain uncertain, lacking clear direction.

XRP's closest resistance level is formed at $1.40, and the support level is located in the $1.30 range. As liquidity has fallen to a six-year low, the risk of slippage when submitting market orders is very high, so investors are advised to exercise extreme caution.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*