$XRP The $5.5 Billion Liquidity Drain: Why XRP Futures Buying Volume Collapsed 95% on Binance

XRP is facing intense structural pressure as futures buying liquidity evaporates, mirroring a broader risk-off trend across the altcoin market. On Binance, the key metric of Taker Buy Volume—representing executed buy orders on futures contracts—has plunged to its lowest levels in months. After peaking aggressively above $5.8 billion in July, this volume has collapsed by approximately 95.7%, settling at just around $250 million.

This massive volume collapse clearly illustrates the near-total cessation of aggressive buying pressure on XRP derivatives. The signal is magnified by its location on Binance, which commands a significant share of global trading volumes. Concurrently, the Taker Buy Sell Ratio has remained dominantly negative, confirming that sellers have maintained control over the XRP derivatives market throughout the period.

The decline reflects a structural headwind: Bitcoin continues to absorb the vast majority of available liquidity, leaving altcoins vulnerable. Coupled with fragile market confidence and the sheer magnitude of the volume compression, the lack of meaningful buying pressure and the prevailing bearish bias in derivatives opens the door to a potentially severe and deeper price correction. Historically, while volume compression precedes volatility, the current setup strongly suggests that initial volatility will be to the downside.