- XRP Under Pressure Amid Capital Withdrawal Operations:

Demand for XRP derivatives among consumers has slowed over the past few days, as evidenced by the decline in open futures contract volume to $2.56 billion on Friday, down from $2.67 billion the previous day.

CoinGlass data shows that open trading volume peaked at $2.87 billion this week, up from $2.11 billion in March. This increase coincided with XRP climbing to $1.61 on Tuesday, before facing some headwinds.

Maintaining an uptrend requires steady increases in derivatives, while continued declines often signal lack of confidence in the token's ability to sustain the recovery.

XRP Futures Open Interest Trading Information | Source: CoinGlass

Meanwhile, activity in XRP spot exchange-traded funds remained weak on Thursday and Wednesday, with no inflows recorded, according to SoSoValue data. Total inflows reached $1.21 billion, while average net assets under management stood at $1.02 billion. This weak activity undermines institutional interest in XRP, which could weaken sentiment and delay price recovery.

XRP ETF Fund Flows | Source: SoSoValue

At the same time, XRP holders are increasingly moving their assets to trading platforms, posing a significant risk to near and medium-term positive outlooks. Trading platform reserves have risen to exceed 2.8 billion XRP as of Thursday, compared to 2.74 billion XRP on March 1st.

Looking back, the average XRP balance on trading platforms was 2.55 billion XRP in February, which also represents the lowest yearly level. Increases in trading platform reserves often jeopardize recovery opportunities by increasing the available supply for selling. This pattern also reflects a lack of confidence in XRP's ability to achieve sustainable recovery in the short to medium term.

XRP Reserves on Trading Platforms | Source: CryptoQuant
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