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Home Blockchain

XRP’s On-Chain Data Says Accumulation, But The Chart Is Warning Of A Squeeze – Analyst

by DigestWire member
May 6, 2026
in Blockchain, Crypto Market, Cryptocurrency
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XRP’s On-Chain Data Says Accumulation, But The Chart Is Warning Of A Squeeze – Analyst
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XRP has reclaimed the $1.40 level as the market heats up and buyers begin asserting control after weeks of consolidation. The move is modest but directional — and a CryptoQuant analyst has just identified a signal in the order flow data that suggests the current recovery may have considerably more structural support than the price action alone reveals.

The 100-day moving average of XRP’s Taker Buy Sell Ratio on Binance climbed to 0.9766 on May 3 — a notable high for an indicator that filters out daily noise and surfaces the more durable, sustained behavioral trends in the derivatives market. A reading approaching 1.0 means that over an extended period, aggressive buyers have been nearly matching aggressive sellers in the order flow — a condition that reflects persistent, mid-to-long-term accumulation rather than short-term momentum chasing.

The context that makes that reading significant is the price it has been occurring against. XRP corrected sharply from its $3.55 peak in July 2025 to the current level around $1.39 — a decline of more than 60%. Throughout that entire correction, the 100-day buying pressure average has been climbing toward its current notable high.

In markets, that kind of divergence — aggressive buyers accumulating through a sustained price decline — tends to describe a specific kind of participant. Not one reacting to price. One positioning ahead of it.

The On-Chain Signal Is Bullish. The Chart Is Not

The CryptoQuant analyst does not allow the accumulation signal to stand unchallenged. Despite the constructive reading in the 100-day buying pressure average, the short-term technical picture is raising concerns that demand equal attention.

XRP is currently forming a bearish pennant directly on a key support level — a pattern that reflects tightening price action after a decline, with lower highs compressing toward a floor that has not yet been confirmed as durable. That compression tends to resolve in the direction of the preceding trend rather than against it. The preceding trend for XRP has been downward.

XRP Ledger: Taker Buy Sell Ratio | Source: CryptoQuant

Layered on top of the pattern is a hidden bearish divergence on the RSI — a signal that indicates momentum is weakening even when price appears to be stabilizing. Together, the two technical signals describe a market where sellers retain structural control despite the surface appearance of support.

The analyst’s conclusion holds both readings without forcing a resolution between them. The on-chain data describes a gradual bottoming phase, with accumulated buying pressure building quietly beneath the price. The chart warns that the bottoming process may not be complete — and that the risk of a long squeeze, where upward bets are forcibly unwound in a sharp downward move, remains elevated until price clears resistance with strong, confirming volume.

XRP at $1.40 is at a genuine crossroads. The accumulation is real. The danger is also real. The difference between the two resolves when the market decides which framework it is operating in — and that decision has not yet been made.

XRP Holds $1.40 As Price Compresses Beneath Key Resistance

XRP is trading around $1.40 after reclaiming the level, but the broader structure remains one of compression rather than expansion. The chart shows a prolonged consolidation phase following the sharp February selloff, with price forming a tight range between roughly $1.30 support and $1.45 resistance.

XRP consolidates below key resistance | Source: XRPUSDT chart on TradingView

The reclaim of $1.40 is technically constructive, but it is not yet decisive. Price continues to trade below the descending 100-day and 200-day moving averages, both of which are acting as dynamic resistance. This overhead pressure has capped every recovery attempt so far, keeping the broader trend biased to the downside despite short-term stabilization.

At the same time, volatility has clearly contracted. Candles have tightened, wicks are shorter, and volume has declined compared to the capitulation phase. This type of structure typically precedes expansion, but it does not indicate direction on its own.

The key level to watch remains the $1.45–$1.50 zone. A clean break above it would shift the structure toward a higher-high formation and open the path toward $1.70. On the downside, losing $1.30 would invalidate the current base and likely trigger a move back toward the $1.10–$1.20 demand area.

XRP is not trending. It is coiling.

Featured image from ChatGPT, chart from TradingView.com 

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