3 data signals show the collapse of XRP demand in December

XRP (XRP) is experiencing renewed downside pressure as derivatives activity and onchain positions continue to weaken in December. These signals indicate that the market is still in risk-off mode, although the price is hovering above key technical support around $2.00.

Main Receptors:

The amount of XRP futures bought on Binance has decreased by 95.7% since July, indicating a decrease in demand.

XRP's estimated leverage ratio (ELR) fell to 0.18, reflecting a wider spread and reduced speculative risk.

Retail, mid-cap and large wallets all show negative cumulative deltas through December, confirming broader selling pressure.

XRP futures demand falls when liquidity dries up

According to data from CryptoQuant, the volume of XRP futures on Binance was over $5.8 billion in July, but has since fallen to $250 million, a drop of about 96%. This fall highlighted the buying pressure not only for XRP, but in the broader altcoin market.

The leveraged buy-sell ratio has remained negative for most of this period, indicating that sellers have consistently controlled the flow of XRP derivatives. From October 10, 2010 From October 10, 2010 A lack of sustained bid-side activity suggests that the downside will be heightened as liquidity flows accumulate and confidence remains weak in the face of a liquidity-driven sell-off. Even the optimism associated with ETFs failed to materially revive demand.

XRP leveraged positions reset with strong market risk.

According to data from Binance, XRP's estimated leverage ratio has dropped to 0.18, one of the lowest readings of the current cycle, with the price falling from above $3.00 to the $2.00 level. This drop suggests that traders are actively reducing or closing out positions, in response to prolonged market flooding.

While low leverage reduces the risk of extinction, it also reflects weak speculative demand. Such areas represent transitional stages in which markets adjust before showing a more pronounced directional trend.

Related: Most Crypto Sectors Lag Bitcoin in Last 3 Months: Glassnode

Profit taking and wallet information indicate empty order books

Glassnode's senior researcher CryptoVizArt reported on December 11 that a 5-7-year-old XRP wallet made a profit of more than $721.5 million at a cost of $0.40, a large-scale distribution event as the price weakened to the $2.00 level.

Order-flow data from Hyblock Capital reinforced this bearish context. December's XRP cumulative delta is negative across all participant segments: retail wallets ($0–$10,000) at -$8.68 million, mid-sized wallets ($10,000–$100,000) at -$6.89 million, and large wallets ($100,000–$10,000) at -$10,000-$10 million. The data shows consistent sales with no group showing sustained buying pressure.

Overall, unless liquidity conditions improve materially, XRP will remain in a low-demand, low-potential environment with data indicating consolidation or further declines.

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