XRP enters the new year attempting to stabilize after one of its most difficult periods in recent memory. Throughout 2025, the asset faced persistent selling pressure, with repeated rallies failing as uncertainty and risk aversion dominated the broader crypto market. That backdrop makes the recent move notable: XRP has gained more than 15% over the past four days, suggesting that buyers are cautiously stepping back in after months of defensive positioning.
While price action alone is not enough to confirm a trend reversal, on-chain and derivatives data point to a meaningful shift in short-term dynamics. Insights shared by CryptoOnchain explain that Binance data shows a sharp improvement in XRP’s Taker Buy/Sell Ratio, with its 7-day moving average rising to 0.991—its highest reading since late November. This metric tracks the balance between aggressive buyers and sellers, offering insight into who is willing to cross the spread and dictate market direction.
The move toward the neutral 1.0 level suggests that sell-side aggression has eased materially. Instead of sellers dominating market orders, buyers are increasingly willing to execute at market prices, a behavior typically associated with improving confidence. Importantly, this shift is emerging after a prolonged bearish phase, rather than at local price highs.
The analysis suggests that XRP appears to be transitioning out of a purely defensive regime. Whether this develops into a sustained recovery will depend on follow-through in price, volume expansion, and the ability of buyers to maintain control as broader market conditions evolve.
XRP Derivatives Data Signals Early Shift in Market Control
The latest CryptoOnchain analysis points to a notable shift in XRP’s short-term market structure, with multiple signals suggesting that selling pressure is beginning to ease. Recent derivatives data points to a meaningful change in XRP’s short-term market structure, with several signals aligning for the first time in weeks.
After spending much of mid-December under clear bearish pressure, trader behavior now suggests a gradual sentiment reset. The improvement in aggressive order flow implies that pessimism has eased, allowing buyers to re-enter without immediately facing heavy sell-side resistance.
According to the analysis, the recent rise in the taker buy/sell ratio marks a clear change from the bearish conditions observed in mid-December. During that period, aggressive sellers dominated order flow, keeping XRP under constant pressure.
The current improvement indicates that traders are becoming more confident, with buyers increasingly willing to step in at market prices rather than waiting for deeper pullbacks. This behavior typically reflects a transition from fear-driven selling to more balanced positioning.
The report also notes that this shift aligns closely with XRP’s recent price recovery. Importantly, the rebound has been supported by active demand rather than thin liquidity, suggesting that buyers are absorbing supply more effectively. This dynamic reduces the probability of sharp sell-offs in the short term, as available sell-side liquidity is being met with real buying interest.
A key level highlighted in the analysis is the near-1.0 threshold in the ratio. Sustained strength beyond this zone would signal that buyers have gained clearer control over market flow, potentially setting the foundation for a more durable recovery phase rather than a temporary bounce.
Price Faces Key Resistance as Relief Rally Develops
XRP has staged a notable short-term recovery after months of persistent downside pressure, gaining momentum from the $1.85–$1.90 region and pushing back above $2.10. On the chart, this move stands out as the strongest bullish sequence since late October, signaling that sellers are losing control after an extended distribution phase. However, the broader structure remains fragile, and the rebound is best described as a relief rally rather than a confirmed trend reversal.
Price is still trading below the declining 100-day and 200-day moving averages, which now act as dynamic resistance near the $2.45–$2.60 zone. Historically, XRP has struggled to sustain upside moves while capped below these levels, suggesting that bulls must reclaim this area to shift the medium-term bias. The 50-day moving average is flattening, indicating that downside momentum is slowing, but it has not yet turned upward.
Volume behavior adds important context. While recent green candles show improved participation compared to December, volume remains well below the levels seen during prior impulse rallies. This implies cautious buying rather than aggressive accumulation. Structurally, the $1.85 level stands out as key support, closely aligned with the rising long-term moving average, which has so far prevented deeper breakdowns.
The current bounce improves sentiment, but confirmation will depend on whether the price can reclaim higher moving averages and sustain follow-through beyond short-term resistance.
Featured image from ChatGPT, chart from TradingView.com
