XRP (CRYPTO: XRP) is down over 5% over the past month, as diminishing liquidity and bearish sentiment weigh on price action.

XRP’s Falling Liquidity To Lowest Level

In a detailed X post, CryptoQuant data showed that the 30-day XRP liquidity index on Binance dropped to around 0.043, a steep decline from the elevated readings above 3 and 4 seen during the high-volatility trading periods between 2022 and 2024.

With less market depth available, even relatively large orders can move price aggressively in either direction. Thinner liquidity can amplify volatility.

At the same time, XRP has been trading near the $1.34 level while speculative activity and fresh liquidity inflows continue cooling…

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