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The $XRP CVD Confirmation Score on Binance indicates that the spot market remains healthy despite the recent pullback from $XRP’s August rally.
Specifically, the CVD Confirmation Score has moved into positive territory, suggesting that $XRP’s price movement still has a reasonable link with activity in the spot market.
The reading comes as $XRP enters a period of consolidation after rising 28.5% in August, its best August performance since 2021.
However, selling pressure remains visible across both the spot and derivatives markets. As a result, $XRP’s next move now depends largely on whether buyers can regain control of the market.
$XRP CVD Shows Signs of Improvement
The 30-day correlation coefficient between $XRP’s price and its Cumulative Volume Delta (CVD) currently sits at about 0.43.
This shows a moderate positive relationship between price and spot order flow. In simple terms, $XRP’s recent price gains have had some support from actual buying activity instead of coming entirely from speculative trading or low liquidity.
For the uninitiated, the CVD Confirmation Score uses price data and CVD to determine whether actual buying and selling activity supports a price move. As a result, a positive reading gives the market a reason for some optimism amid the pullback.
However, the $XRP spot CVD remains negative at around -8 million. This means sell orders continue to exceed buy orders when measured across the period. While the positive confirmation score indicates improving price-flow alignment, the negative CVD shows that buyers have not yet taken full control of spot trading.
$XRP at Key Support After August Rally
Notably, $XRP gained 28.5% in August, with most of the increase coming during the final two weeks of the month. The token climbed from around $1.00 to a local high above $1.69 before the rally began to lose momentum.
$XRP has since formed a descending triangle following the August surge and now trades around $1.36. The decline so far shows $XRP is now in a period of consolidation after a sharp rally, although the continued weakness in CVD shows that sellers remain active.
U.S. spot $XRP ETFs also recorded strong inflows during August. These products attracted $153.55 million during the month, with $150.28 million coming in during the final two weeks. That was about 46 times the pace recorded during the first half of August.
Binance Data Shows Selling Pressure
Meanwhile, the derivatives market currently looks weaker than the positive CVD Confirmation Score suggests. Binance Perpetual CVD dropped from about -$480 million on Aug. 22 to -$882.1 million on Aug. 31.
This represents a roughly 84% increase in the negative imbalance and marks the most negative reading since July 2026.
Spot trading on Binance also weakened during the same period. Binance Spot CVD fell from approximately +$39 million to -$167.5 million, marking a negative swing of about $206.5 million.
This reduction in leverage has both positive and negative effects. It lowers the amount of leverage that could trigger further liquidations if $XRP falls. However, it also leaves the market with less leveraged positioning that could support a strong short squeeze.
Analyst Ali Martinez has identified the $1.35-$1.38 region as an important demand area. Around 3.2 billion $XRP previously traded within this range, which makes it a key level for the current market structure.