- XRP trades below key moving averages as bears defend the broader downtrend.
- Open interest drops sharply, signaling fading leverage and weaker trader activity.
- Exchange outflows reduce selling supply despite XRP’s ongoing bearish momentum.
XRP continues to trade under heavy pressure as sellers maintain firm control across the daily timeframe. The token hovers near $1.04 after extending a broader downtrend that has remained intact since its May peak. Technical indicators still favor the downside, while declining derivatives activity reflects fading speculative interest.
Even so, steady exchange outflows suggest many investors prefer holding their tokens instead of preparing to sell them. That combination creates a market where short-term momentum remains weak, yet underlying supply conditions could gradually improve if buying demand returns.
XRP Faces Critical Technical Levels
The daily chart shows XRP forming another series of lower highs and lower lows, reinforcing the prevailing bearish structure. Price also remains below the 20, 50, 100, and 200-day exponential moving averages. Consequently, sellers continue to dictate the broader trend.
Immediate support sits at $1.0076, which also aligns with the Fibonacci 0.0% level. A decisive break below that area would expose the important psychological support at $1.00. Losing that threshold could invite another wave of selling and push XRP toward earlier swing lows.
However, buyers still have several resistance barriers to overcome before sentiment improves. The first hurdle stands near $1.0866, followed by the 23.6% Fibonacci retracement at $1.1361.
Additional resistance appears at $1.2156 and $1.2798, representing the 38.2% and 50% retracement levels. Moreover, stronger resistance remains near $1.3440 and $1.4355.
The Donchian Channel also places XRP near its lower boundary. That positioning sometimes precedes short-term rebounds. Nevertheless, any recovery will likely struggle unless buyers reclaim the $1.14 to $1.22 region with convincing trading volume.
Falling Open Interest Signals Cooling Speculation
Derivatives data reveals a sharp decline in trader participation. XRP open interest has dropped dramatically from levels above $10 billion to roughly $2.41 billion. That decline indicates traders continue closing positions instead of opening new leveraged bets.
Additionally, lower open interest reduces liquidation risks that often fuel sudden price swings. Although weaker participation reflects fading momentum, it may also provide a healthier foundation for future market trends once fresh capital returns.
Exchange Outflows Offer Long-Term Support
Spot market activity presents a different picture. Exchange flow data continues to favor outflows despite occasional deposits. Recent netflows show approximately $5.59 million leaving exchanges, extending a broader pattern of withdrawals.
Significantly, sustained outflows often indicate investors are transferring holdings into private wallets instead of preparing immediate sales. That behavior gradually reduces available exchange supply and could strengthen long-term price stability.
Technical Outlook for XRP Price
Key technical levels remain in focus as XRP trades near the critical $1.00 support zone, with the broader trend still favoring sellers.
Upside levels: $1.0866 marks the first resistance, followed by $1.1361 and $1.2156. A sustained breakout above these barriers could open the path toward $1.2798, with extended upside targets at $1.3440 and $1.4355.
Downside levels: Immediate support lies at $1.0076, followed by the key psychological level at $1.00. A breakdown below that area could expose previous swing lows and reinforce the prevailing bearish trend.
Resistance ceiling: The cluster of major moving averages between $1.14 and $1.22 remains the key zone bulls must reclaim to shift medium-term momentum in their favor.
The technical picture shows XRP trading near the lower boundary of the Donchian Channel while remaining below all major exponential moving averages. Although this setup could encourage a short-term relief rally, the broader trend remains bearish until buyers reclaim higher resistance levels with stronger volume.
Will XRP Go Up?
XRP’s next move depends on whether buyers can successfully defend the $1.00 support while rebuilding momentum above the $1.14-$1.22 resistance zone.
Continued exchange outflows suggest investors remain willing to hold rather than sell, which could gradually tighten available supply. At the same time, declining open interest indicates leverage has largely been flushed from the market, reducing the risk of sharp liquidation-driven moves.
Related: Ethereum Price Prediction: ETH Whales Are Underwater for the First Time Since 2019
If buying volume strengthens and XRP breaks above $1.1361, the rally could extend toward $1.2798 and potentially $1.3440. However, losing the $1.00 support would reinforce bearish sentiment and increase the probability of another leg lower. For now, XRP remains at a decisive technical inflection point where price action around support will likely determine the next major trend.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
