 ▲ XRP |
XRP has entered a new phase, signaling expanded price volatility alongside a record-breaking surge in futures inflows.
According to crypto media outlet U.Today on February 21 (local time), XRP recently drew intense market attention as futures inflows skyrocketed by an extraordinary 1,606%. On-chain analyst Arman Shirinyan assessed that such a phenomenon is likely to be accompanied by strong volatility regardless of price direction. Although XRP is currently moving sideways near a local bottom after a prolonged downtrend, aggressive position building in the derivatives market suggests a calm before the storm.
The recent explosion in futures market activity appears to be driven more by directional leveraged bets than by spot buying demand. Shirinyan explained that rising futures inflows during a period of stagnant prices indicate traders are making strong bets in one direction. These leveraged positions create instability, as forced liquidations—either a short squeeze or a long squeeze—can exponentially push prices higher or lower.
On-chain metrics show that network usage remains active, though payment volumes display some irregular patterns. While the number of transfers between accounts has not declined, sharp surges followed by steep drops in payment amounts suggest short-term speculative trading rather than long-term accumulation. This supports the view that XRP is in a transitional phase—lacking strong bullish conviction yet not entirely sidelined by the market.
From a technical analysis perspective, XRP continues to trade below key moving averages, maintaining a structurally weak setup. However, on-chain token movements and explosive futures inflows could serve as powerful catalysts to break the prolonged sideways range. Market analysts warn that once the currently compressed energy releases in either direction, prices could swing sharply, urging investors to practice strict risk management.
XRP is currently in a unique situation where spot demand and derivatives market enthusiasm are out of sync. Shirinyan emphasized that historically, strong volatility has consistently followed when high derivatives activity coincides with irregular on-chain transaction volumes. Investors are closely monitoring whether large capital flows in the futures market will translate into actual price movements and whether key resistance levels will be breached.
Disclaimer: This article is for investment reference only and we are not responsible for any investment losses incurred based on it. The content should be interpreted for informational purposes only.