Ripple cross-border payment token, XRP, is navigating turbulent waters as bearish sentiment tightens its grip on the market. After a two-day losing streak, XRP currently trades just below $2.40, having failed to break past $2.55 earlier in the week—a move that incited early profit-taking across the derivatives space.
Investor caution remains high, reflected in subdued retail demand and an open interest languishing below $4 billion. This week’s sentiment follows the aftermath of October’s significant crypto liquidation, which saw $19 billion wiped from digital asset markets. XRP’s open interest, formerly at $10.94 billion after the July peak of $3.66, is now stagnant. A sustained uptick in open interest is critical to reigniting bullish momentum.
Technical indicators reinforce the risk-off mood. The weighted funding rate for XRP futures has dropped steeply into negative territory, suggesting traders favor short positions amid thinner optimism. Nevertheless, the rate’s marginal position near the mean hints at a market still weighing its options—upcoming sessions will be pivotal in revealing retail traders’ appetite for risk.
| Source: CoinGlass
A silver lining for bullish investors emerges as XRP exchange reserves on Binance drop by 3.36% through October, settling around 3.45 billion tokens. This steady outflow mirrors a classic accumulation phase, where long-term holders migrate capital to self-custody, reducing circulating supply and enhancing prospects for eventual price recovery.
From a technical perspective, XRP’s daily chart shows a decisive shift in momentum. The Relative Strength Index (RSI) anchors below 40, while Friday’s Death Cross—where the 50-day Exponential Moving Average (EMA) fell beneath the 100-day EMA—signals heightened bearish sentiment. The Money Flow Index remains stable in bearish territory, highlighting tepid capital inflows. For bulls, only a close above immediate resistance at $2.40, and eventual breakthroughs of the 50- and 200-day EMA levels ($2.71 and $2.70, respectively), would validate a sustained comeback.
Ripple’s XRP trades at a crossroads, balancing short-term pressure against optimism driven by exchange reserve contraction. The coming days will test whether retail and institutional actors can muster enough demand to shift the trajectory, or whether bearish currents will continue to dominate the narrative.
Disclaimer: This article is provided for informational purposes only and does not constitute financial advice. Investors should always conduct their own thorough research and consult with a qualified financial advisor before making any investment decisions in cryptocurrencies, which are highly volatile and speculative assets.
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