XRP Price Holds Support After Selloff as On-Chain Data Shows Reduced Downside Risk

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XRP price started today’s session under heavy pressure, sliding close to 5% lower amid broad crypto market weakness. However, as the day passed, the selling momentum faded, with price beginning to recover steadily, trimming losses to roughly –2% by mid-session. This rebound was not driven by a sudden spike in volume or speculative momentum. Instead, buying interest emerged gradually near lower levels, suggesting measured dip accumulation rather than forced short covering. 

The absence of follow-through selling indicates that downside pressure is being absorbed, even as broader sentiment remains cautious. While XRP has not confirmed a trend reversal, the intraday recovery highlights a shift from aggressive selling to price stabilization, often seen when markets enter a reassessment phase.

On-chain metrics shows that XRP continues to trade well below its 200-day moving average, with price hovering near the $1.8–$1.9 zone while the 200DMA sits closer to $2.5. This roughly 25% gap confirms that the broader trend has not flipped bullish yet. However, the absence of sharp downside continuation suggests the market is operating in a corrective equilibrium, not a structural collapse. Looking deeper, the 30-day Sharpe Ratio remains close to zero, around 0.03–0.04, indicating that recent returns have barely compensated for risk. Historically, such readings emerge during consolidation phases, when volatility compresses and directional conviction fades.

At the same time, the Sharpe Z-Score, near +0.7, shows modest improvement relative to recent history. While still below levels associated with strong trend formation, it signals that downside efficiency has weakened. While short-term momentum metrics echo this view, with the 7-day Sharpe Momentum slightly positive but subdued consistent with early base-building rather than impulsive upside. Together, these indicators suggest XRP is losing bearish momentum, even if it has not yet regained bullish dominance.

Ripple’s escrow mechanism returned to focus after on-chain trackers flagged a series of large XRP unlocks during the session. Data shows that close to 1 billion XRP was unlocked in multiple tranches, including 100 million and 400 million XRP transactions, with individual releases valued between $160 million and $650 million at prevailing prices. 

RIPPLE ESCROW IN MOTION