XRP has been struggling to hold above $1.35 as the market absorbs a wave of post-Fed deleveraging that has compressed derivatives activity to levels not seen since the beginning of the year. The price is at a critical juncture — and a CryptoQuant report tracking the aftermath of the April 29 Federal Reserve decision has mapped exactly what happened to XRP’s market structure in the hours and days that followed.

The Fed held rates unchanged at 3.50% to 3.75%, consistent with expectations. Jerome Powell simultaneously confirmed he would remain on the Federal Reserve Board as a governor after his chairmanship ends — a development that kept macro attention elevated across risk assets rather than allowing markets to settle into the rate decision alone. For XRP, the combined effect was immediate and visible across the derivatives market.

Binance open interest for XRP fell to approximately $208 million on April 29 — a contraction that brought leverage levels back to the same area recorded in February 2026. The significance of that regression is not just the level itself but what it represents: all the leveraged positioning that accumulated between February and late April has been unwound in a compressed period, resetting the derivatives structure back to its starting point.

The reset happened fast. What follows it is the question the current price level is building toward answering.

The Leverage Is Gone. The Demand Has Not Arrived Yet

The CryptoQuant report extends the picture beyond open interest to confirm that the deleveraging has been accompanied by genuine demand weakness rather than simply a technical reset. All CEX Estimated Spot CVD has declined to approximately $920 million since April 17 — meaning real, underlying buying activity across centralized exchanges has weakened during the same period that leverage was being removed. The two forces moving in the same direction simultaneously are the details that prevent the current setup from being read as straightforwardly constructive.

The perpetual market adds a third layer of confirmation. Binance Perpetual CVD declined from approximately -$271 million to -$383 million, a further deepening of $112 million in net sell-side pressure even as open interest was contracting. Sellers remained active in the perpetual market throughout the reset period rather than stepping back alongside the leveraged longs.

The liquidation data ties the structure together. Long positions dominated the liquidation activity from April 17 through the end of the month, with the pressure concentrating particularly around the Fed and Powell headlines on April 29. The participants most exposed were the ones who had built long exposure, and the forced exits from those positions added supply to a market that was already seeing spot demand weaken.

The takeaway the report identifies is precise and conditional. XRP’s market structure is cleaner than it was — excess leverage has been removed, fragile positions have been cleared. But clean is not the same as ready. For a meaningful recovery to develop from the current $1.35 level, spot CVD needs to stabilize and begin recovering. Until that signal appears, the reset is complete, and the next move remains unconfirmed.

XRP Compression Tightens As Market Tests Post-Deleveraging Support

XRP is trading near $1.37, holding a narrow range that has defined price action since the sharp February selloff. The structure is neutral but increasingly compressed. After the capitulation wick toward $1.15, price stabilized and has since formed a sequence of shallow higher lows, suggesting passive accumulation rather than aggressive trend reversal.

However, the broader context remains restrictive. XRP is still trading below all major moving averages, with the 50-day acting as immediate resistance and the 100-day and 200-day trending downward above the price. This alignment keeps the market in a medium-term bearish structure despite short-term stabilization.

The $1.35 zone is the key pivot. It has acted repeatedly as both support and equilibrium, reflecting a balance between buyers absorbing supply and sellers defending upside attempts. The recent rejection near $1.45 reinforces the presence of overhead supply, limiting momentum.

Volume trends support the consolidation thesis. Activity has declined significantly compared to the February breakdown, indicating reduced participation following the deleveraging event. This typically precedes expansion but does not indicate direction.

A decisive break above $1.45 would shift the structure and expose $1.60. Failure to hold $1.33–$1.35 would invalidate the higher-low pattern and likely trigger a move back toward $1.25, where prior demand emerged.

Featured image from ChatGPT, chart from TradingView.com 

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