Ripple’s XRP is facing increasing downward pressure as it hovers around $2.18, having dropped 4% from its recent lower high of $2.25. This decline comes amid a consolidating cryptocurrency market and concerning signals from derivatives trading data that suggest the bearish trend may continue in the near term.
Derivatives Market Signals Waning Interest
The XRP derivatives market is showing clear signs of diminishing trader engagement, which could extend the current downtrend. According to recent data, XRP’s open interest has fallen by approximately 3% to $3.91 billion in the past 24 hours, while trading volume has plummeted by 14% to $3.53 billion . This significant drop in both metrics indicates reduced market participation and waning interest in XRP futures trading.
Long position traders have been hit particularly hard, with liquidations reaching $4.45 million compared to just $294,000 in shorts. The current long-to-short ratio stands at 0.9275, favoring sellers and making a trend reversal less likely in the immediate future.
Technical Indicators Paint a Mixed Picture
From a technical analysis perspective, XRP is currently trading below several key moving averages:
• The 200-period Exponential Moving Average (EMA) at $2.27
• The 100-period EMA at $2.25
• The 50-period EMA at $2.22
The Moving Average Convergence Divergence (MACD) indicator has recently flashed a sell signal, with the blue MACD line crossing below the red signal line. This technical development typically encourages traders to reduce their exposure to the asset .
However, not all indicators point downward. The SuperTrend indicator has recently generated a buy signal on the 4-hour timeframe, suggesting that selling pressure could be easing. This potential divergence might set the stage for a near-term rebound if XRP can reclaim the key EMA levels mentioned above.
Market Context and Future Outlook
XRP’s current struggles come at a time when the broader cryptocurrency market is in a consolidation phase. While some altcoins have shown signs of recovery, XRP has continued to face downward pressure .
Looking ahead, traders should watch for XRP’s reaction at key support levels, particularly around $2.07. If this level holds, a potential rebound could target the 50-period EMA at $2.22, followed by the 100-period EMA at $2.25 and the 200-period EMA at $2.27 .
Conversely, if selling pressure intensifies, XRP could test lower support levels, potentially approaching the $1.76 mark that analysts have identified as a critical support zone for June 2025.
Regulatory Landscape Remains a Factor
While immediate price action is driven by technical factors and market sentiment, the ongoing regulatory situation continues to influence XRP’s longer-term outlook. The partial resolution of the SEC vs. Ripple lawsuit has provided some clarity, but regulatory considerations remain an important factor for investors to monitor.
