XRP showed a modest recovery on Tuesday, moving alongside a wider uptick in the cryptocurrency market despite ongoing selling pressure and weak on-chain activity. The digital asset traded around $1.097, maintaining levels below its major moving averages as buyers continued to struggle against the prevailing downtrend.
On-chain metrics highlight ongoing sell pressure
Multiple indicators point to substantial continued selling pressure in XRP. According to blockchain analytics provider CryptoQuant, spot and futures markets for XRP have displayed notable activity by large holders, or whales, with a predominant sell-side presence. CryptoQuant also observed intensified trading activity in the spot market, suggesting that the cryptocurrency remains in a correction phase.
Technical and market signals indicate that sellers still hold control, limiting any meaningful recovery for XRP in the short term. CoinGlass data shows the XRP long-to-short ratio increased to 1.01 on Tuesday, marginally above the neutral threshold. This shift suggests that some traders are positioning for a potential recovery, though sentiment remains mixed.
Despite the slight rise in the long-to-short ratio, Open Interest in XRP futures fell by 2.6% over the last 24 hours to $2.44 billion. Meanwhile, the funding rate turned positive, currently measured at 0.0095%, further reflecting mixed sentiment among derivatives traders.
| Metric | Current Value | Change/Status |
|---|---|---|
| Price | $1.097 | Slight recovery |
| Long-to-Short Ratio | 1.01 | Above neutral |
| Open Interest | $2.44 billion | -2.6% in 24h |
| Funding Rate | 0.0095% | Turned positive |
Mini dictionary: CryptoQuant is a data analytics firm specializing in on-chain and derivatives market intelligence for cryptocurrencies, offering real-time insights to traders and institutions.
XRP’s spot and futures markets have seen sizable whale transactions, with large orders predominantly on the sell side, creating ongoing pressure for a convincing recovery.
Technical outlook: Bearish trend dominates
The technical forecast for XRP remains negative as the cryptocurrency stays below its major Exponential Moving Averages (EMAs). As of Tuesday, XRP failed to reclaim its 50-day EMA at $1.294, the 100-day EMA at $1.303, and the 200-day EMA at $1.365. This stack of moving averages forms a significant resistance zone, further reinforcing the established downtrend.
Momentum indicators also paint a weak picture. The daily Relative Strength Index (RSI) is near 26, indicating that XRP is in deep oversold territory. Additionally, the Moving Average Convergence Divergence (MACD) remains negative, underlining that bearish momentum continues to lead the market.
If buying interest does not pick up, sellers could push XRP toward the psychological $1 support level, a key area where buyers may attempt to halt further declines. A drop below this threshold would erode market structure and raise the risk of further losses.
Should buyers leverage the oversold conditions, XRP could attempt a short-term bounce. The first significant resistance is found at $1.160. Regaining this level would signal an initial improvement in price momentum, possibly paving the way for a move toward the $1.300 zone, where several EMAs converge.
Overcoming the $1.300 area would expose XRP to the 200-day EMA at $1.365. Beyond that, resistance at $1.540 and $1.900 would require a substantial improvement in overall sentiment and sustained buying power.
The cluster of EMAs above the current price marks a difficult resistance for buyers, with each failed attempt increasing the likelihood of continued downward movement unless momentum shifts dramatically.
At present, the combination of persistent bearish momentum and continued selling activity suggests that any potential rebound will encounter strong resistance. The $1 support remains a critical threshold for market participants watching XRP’s next move.
