XRP holders turn profitable, but Spot demand is gone: Can $1.10 hold?

$XRP’s recent market structure is sending mixed signals as activity shifts away from Spot trading and into the derivatives market.

Price remained consolidated between $1.086 and $1.113 despite steadily declining trading volume, suggesting neither buyers nor sellers held a decisive advantage.

Ordinarily, weakening Spot activity would reduce speculative interest. Despite this, Open Interest increased by approximately 5.9% to 423.8 million Ripple [$XRP]. At the same time, the estimated leverage ratio for $XRP rose to .162.

This divergence matters because derivatives can sustain positioning without introducing fresh capital into the market. As Spot inflows and outflows collapsed by roughly 99%, leveraged traders increasingly became the dominant force behind $XRP’s price discovery.

That explains why the price continued consolidating instead of breaking decisively. However, unless Spot demand returns to validate those positions, the growing leverage leaves $XRP increasingly vulnerable to a sharp unwind if sentiment suddenly shifts.

$XRP STHs turn profitable

The sustainability of this increasing leverage now depends on one key factor: holder profitability. Recent buyers have finally moved back into profit after $XRP’s 30-day MVRV crossed above neutral to 1.03.

That improvement broadly matched Bitcoin’s [BTC] 1.04, Ethereum’s [ETH] 1.11, Cardano’s [ADA] 1.07, and Chainlink’s [LINK] 1.07. As such, it implies that investor sentiment continues recovering across large-cap assets rather than simply being limited to $XRP.

This shift in profitability has changed the incentive structure in the markets. As more short-term holders leave unrealized losses behind, the pressure to hold typically gives way to a greater willingness to lock in gains.

Although the altcoin remains below the historical sell zone, the price action is becoming increasingly difficult to sustain. This is due to a lack of new demand coming into the space and the potential emergence of profit-taking.

Final Summary

• $XRP holders are back in profit, but the rally is being driven more by leverage in derivatives markets than by real Spot demand.The $1.10 support level is at risk, as profit‑taking pressure grows and doubts grow about sustainability.