XRP Slides as Bearish Derivatives Data Signals Weakness Below $1
XRP fell more than 2% over recent days, with on-chain data showing sell-side dominance and a long-to-short ratio of 0.83 signaling bearish positioning. The token approaches its 200-day exponential moving average near $1.35, with one analyst warning it risks breaking below $0.90.
Written by CoinArticle’s AI Newsroom · from 2 cited sources. How we work
Selling Pressure Mounts on Derivatives
XRP has fallen more than 2% over the past few days as derivatives data points to sustained bearish positioning. The token's long-to-short ratio stands at 0.83, indicating more short positions than longs, while the funding rate has turned negative—a typical signal that traders are betting on further declines. On-chain analysis shows sell-side dominance in XRP's spot market, adding to the downward pressure.
Support Levels Under Scrutiny
XRP is trading near its 200-day exponential moving average at approximately $1.35, a technical level that has provided support in past months. One analyst cited by CryptoPotato suggested the token could test below $0.90 if the selling continues, echoing a pattern the asset exhibited in March. That lower threshold would represent a break through the historical $1 floor that has held through much of 2024.
Context for Traders
The combination of negative funding rates and elevated short positions typically indicates weak conviction among leveraged buyers. However, negative funding rates can also represent a near-term mean reversion opportunity if the oversold condition reaches an extreme. The 200-day EMA at $1.35 remains the immediate technical reference point.
Why It Matters
For Traders
A break below the 200-day EMA at $1.35 could trigger stop-loss cascades; watch the $0.90 level for confirmation of extended downside.
For Investors
Sustained sell-side dominance and negative funding rates suggest weak hands are present, which may create volatility but does not necessarily indicate structural weakness.
For Builders
XRP-based applications and Ripple infrastructure see no direct technical impact from price action, though sustained weakness may reduce ecosystem activity.
This article is for information only and is not financial advice. Read the full disclaimer.
