Similar conditions in past market cycles have appeared ahead of strong price rebounds, though the firm cautioned that a weak MVRV reading alone does not guarantee an immediate turnaround.
XRP Liquidity on Binance Falls to Its Lowest Level Since January 2020
For context, that same index climbed above three during periods of stronger trading between 2022 and 2024, at times crossing four.
The collapse in that figure points to a market that has thinned out considerably, with far fewer orders available to absorb large trades. Arab Chain said the decline suggests speculative interest in XRP has faded and that fresh money has slowed.
A thinner market can cut both ways. When fewer orders sit in the book, a large buy or sell can push the price sharply in either direction without much resistance.
Arab Chain made clear, though, that low liquidity does not point to a bullish or bearish outcome on its own — it simply means the market is more sensitive to sudden moves.
XRP was trading near $1.34 at the time of the analysis, having pulled back from a recent high of $1.54. Crypto analyst CasiTrades flagged that XRP has spent four months struggling to clear the $1.65 resistance level, and the longer it stays below that mark, the greater the risk of one final drop before any recovery takes hold.
Key Levels To WatchXRP whale transactions worth over $1 million have also dropped 57% over a nine-day stretch, based on separate reports, adding to the picture of slowing activity in the market.
Featured image from Unsplash, chart from TradingView
