Key takeaways
- XRP trades below $1.25 on Tuesday as the cryptocurrency struggles to recover.
- CryptoQuant data points to persistent sell-side dominance in XRP, with large whale orders adding uncertainty to XRP’s outlook.
- XRP faces immediate resistance at $1.285 and $1.30, while a deeper decline could bring the $1.16 and $1.00 support levels into focus.
XRP remain under selling pressure on Tuesday as it struggles to recover from their recent declines.
XRP is trading below $1.25, with buyers finding it difficult to push the price back above the $1.30 level.
Data from CoinGlass and CryptoQuant paints a mixed picture. While funding rates suggest some traders are still betting on a recovery, derivatives positioning and on-chain activity indicate that sellers remain influential.
Technical indicators are also showing little evidence of a sustained reversal, leaving both cryptocurrencies vulnerable to further losses.
XRP derivatives data show mixed market sentiment
Derivatives traders appear increasingly cautious about the near-term prospects of XRP, although not every indicator points in the same direction.
According to CoinGlass, XRP’s long-to-short ratio stood at 0.84 on Tuesday. The ratio is below 1, indicating that short positions outnumber long positions in the measured market.
The readings suggest a bearish tilt in positioning, with traders showing limited confidence in an immediate price recovery.
However, funding rates tell a somewhat different story. Funding rates for XRP turned positive on October 30 and have remained above zero.
As of Tuesday, XRP’s funding rate stood at 0.0073%. Positive funding rates mean traders holding long positions are paying those with short positions, reflecting a willingness among some market participants to maintain bullish exposure.
The contrast between the long-to-short ratios and funding rates suggests that traders remain divided over the next major price move.
While short positioning points to caution, positive funding indicates that some leveraged traders are still anticipating a rebound.
Beyond the derivatives market, on-chain and trading activity data also suggest that XRP and Stellar are facing persistent selling pressure.
According to CryptoQuant’s market summary, XRP’s spot and futures markets are showing sell-side dominance alongside unusually large whale orders.
Large orders from major market participants can influence short-term price movements, especially when liquidity is relatively thin.
CryptoQuant also identifies heating conditions in XRP’s spot market, suggesting heightened trading activity during a period of weak sentiment.
Taken together, these indicators point to a cautious market environment in which sellers continue to have an advantage.
XRP technical forecast: Bears maintain control below $1.30
XRP is trading around $1.2487 on Tuesday, with its daily chart showing that the cryptocurrency remains firmly under bearish pressure.
The token is currently trading below its major Exponential Moving Averages (EMAs), including the 50-day EMA at $1.336, the 100-day EMA at $1.324, and the 200-day EMA at $1.365.
Trading below all three indicators suggests that the broader trend remains weak, with potential recovery attempts likely to encounter resistance.
XRP is also struggling beneath a descending trendline near $1.285 and the psychological resistance level at $1.30.
These two barriers represent the first major obstacles buyers must overcome to improve the short-term outlook.
Momentum indicators offer little encouragement for bulls. The Relative Strength Index (RSI) is hovering around 37, indicating weak buying momentum.
However, the indicator has not yet entered oversold territory, suggesting that additional downside remains possible before selling pressure becomes technically stretched.
Meanwhile, the Moving Average Convergence Divergence (MACD) remains slightly negative, reinforcing the prevailing bearish sentiment.
On the upside, XRP must first reclaim the descending trendline resistance around $1.285.
A sustained move above this level could open the door for a retest of $1.30, which has emerged as an important short-term resistance zone.
If buyers manage to break above $1.30, attention could shift toward the 100-day EMA at $1.324 and the 50-day EMA at $1.336.
The 200-day EMA at $1.365 represents another significant hurdle. A decisive move above this cluster of moving averages would strengthen the case for a broader recovery toward $1.54 and potentially $1.90.
On the downside, immediate support lies at $1.16. A breakdown below this level could accelerate selling pressure and expose the psychological $1.00 mark, where buyers may attempt to defend the price.
For now, XRP’s technical structure remains bearish, with the inability to reclaim $1.30 keeping sellers in control.
