XRP Selling Pressure Is Easing, but Something Is Still Missing

Key Highlights

• XRP is trading near $1.37 after falling roughly 6% over the past week
• Bybit’s deposit dominance wave appears to have ended around May 16
• Binance and Coinbase transaction flows are now showing more withdrawals than deposits
• Institutional accumulation indicators remain slightly negative despite improving flows
• XRP continues trading below all major short-term moving averages
• RSI momentum has improved, but confirmation of a trend reversal is still absent
• Analysts say easing selling pressure alone is not enough to confirm renewed demand
• Traders are closely watching whether XRP can reclaim the SMA50 resistance zone

XRP is beginning to show signs that aggressive selling pressure may be fading, but analysts argue the market still lacks one critical ingredient: clear evidence of renewed institutional accumulation.

Recent on-chain data has created a mixed picture for the asset. According to CryptoQuant flow metrics, the strong deposit dominance previously seen on Bybit throughout much of April and early May has now largely disappeared. Around May 16, transaction deltas returned close to neutral territory, signaling that the wave of consistent exchange inflows may finally be cooling down.

At the same time, Binance and Coinbase have shifted into negative transaction delta territory, meaning withdrawal transactions are now outpacing deposits on both exchanges. Analysts often interpret rising withdrawals as a constructive sign because assets moving off exchanges can indicate reduced immediate selling intent. However, the data measures transaction counts rather than total token size, meaning it does not necessarily confirm large-scale accumulation.

While exchange flow pressure appears to be easing, institutional positioning remains less convincing. Arab Chain’s Binance XRP Institutional Accumulation Model recently slipped back into slightly negative territory around -0.0059 after showing stronger readings during XRP’s earlier move toward $1.45 in April. The metric remains close to neutral rather than deeply bearish, but analysts note that the direction has weakened rather than improved.

This disconnect is at the center of the current market debate. Selling pressure may be slowing, but there is still limited evidence that strong buyers are stepping in aggressively enough to reverse the broader trend.

Technically, XRP also remains in a fragile position. Price continues trading below all three major hourly moving averages, including the SMA50 near $1.3762, the SMA100 around $1.3948, and the SMA200 near $1.4230. All three averages are still sloping downward, reinforcing the idea that the broader short-term structure remains bearish despite recent stabilization.

Momentum indicators have improved modestly. XRP’s Relative Strength Index recently climbed above its signal line following the sharp May 18 decline that pushed price from roughly $1.41 toward the mid-$1.34 range. Analysts say this marks the first meaningful momentum recovery attempt since the selloff began. Still, RSI improvement alone is not considered confirmation of a trend reversal while price remains below major resistance levels.

The current setup resembles earlier XRP periods where selling cooled before stronger directional moves eventually developed. However, analysts caution that reduced sell pressure is not the same as active accumulation. Markets can stabilize temporarily without generating enough demand to sustain a meaningful breakout.

Some traders continue focusing on broader structural factors that may eventually support XRP, including long-term adoption growth, XRP Ledger development, stablecoin infrastructure, and regulatory clarity initiatives tied to the CLARITY Act. Discussions across crypto communities suggest many holders still view the current environment as consolidation rather than collapse, although patience is increasingly being tested after months of weak price action.

For now, traders are watching whether XRP can reclaim the SMA50 and begin establishing higher short-term support levels. Analysts note that a move back above key moving averages combined with renewed positive accumulation readings would significantly strengthen the recovery case. Without that confirmation, easing selling pressure may simply represent a pause in downside momentum rather than the beginning of a sustained bullish reversal.