$XRP is currently trading around $1.34, slipping 1.05% in the last 24 hours and extending its broader decline with a 7-day drop of 3.27% and 30-day loss of 6.02%.
Despite the pullback, XRP still holds the #3 position in the crypto market with a $82.2B market cap and $1.78B daily trading volume.
The broader market mood remains tense. The Fear & Greed Index sits at 18, firmly in extreme fear territory, which historically signals heavy caution among traders.
But beneath the surface, the data tells a deeper story.
Futures open interest has collapsed nearly 79%, falling from $10.94B in July 2025 to $2.33B today. This kind of deleveraging often happens when markets flush out excessive leverage before a new directional move begins.
Technically, XRP is still under pressure.
The RSI sits near 39, pointing to bearish momentum. Price also trades below the 50-day moving average at $1.57 and the 200-day moving average at $2.22, both acting as major resistance zones.
Short term levels to watch are clear:
• Pivot level: $1.36
• Immediate resistance: $1.41
• Major resistance: $2.00
If buyers cannot reclaim these levels, the market may remain stuck in consolidation.
Meanwhile, institutional positioning shows a clear imbalance.
Large short whales dominate with 195 positions, holding an average entry near $1.63, representing 124.8M XRP exposure.
Long whales hold only 100 positions with average entry at $1.45, and very few of them are currently profitable.
The long/short ratio of 0.39 strongly suggests that major players are leaning bearish for now.
Recent trading activity also reflects selling pressure, with top traders recording net selling of $1.21M in the latest hour.
Yet, fundamentals around the XRP ecosystem continue evolving.
Ripple is quietly expanding the XRPL ecosystem toward institutional DeFi, including development of native lending protocols and deeper integration with the RLUSD stablecoin.
At the regulatory level, the Digital Asset Market CLARITY Act, expected around 2026, could classify XRP as a digital commodity, potentially reshaping its regulatory environment.
Institutional interest also remains visible.
XRP ETFs have already attracted $1.26B in cumulative inflows, pushing total AUM above $2.4B, even while prices remain under pressure.
Ripple’s Ripple Prime integration with the DTCC system also connects XRPL infrastructure with U.S. securities clearing networks, quietly bridging crypto rails with traditional financial markets.
Still, risks remain.
Roughly 36.8B XRP tokens are currently underwater, representing nearly $50.8B in unrealized losses. If key support breaks, forced selling could accelerate downside momentum.
In the near term, traders are watching $1.30 support closely.
A clean breakdown could expose $1.20 as the next major support zone.
For leveraged traders, caution is essential. Many analysts suggest reducing leverage below 3× and maintaining strict stop-loss discipline while volatility remains elevated.
Markets often look weakest just before momentum shifts — but confirmation always matters.
Do you think XRP is forming a bottom here, or will the market test lower support first?
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