XRP is trading near a critical technical support area after losing more than 2% this week, while derivatives data points to increasingly cautious positioning among traders.
The token was changing hands at around $1.392 on Thursday, keeping it above its major exponential moving averages but within reach of the 200-day EMA at approximately $1.354. A break below that level could expose XRP to further downside, particularly as futures positioning and momentum indicators weaken.
Bearish positioning grows in derivatives markets
Data summarized by CryptoQuant shows signs of selling pressure in XRP’s futures market. The token’s long-to-short ratio fell to 0.83 on Tuesday, its lowest level in a month. A reading below 1 indicates that short positions outnumber long positions.
XRP’s funding rate also turned negative on Wednesday and stood at -0.0012% on Thursday. Negative funding means traders holding short positions are paying those with long positions, a sign that bearish bets have become more prominent.
CryptoQuant also described XRP’s futures market as overheated, with retail traders accounting for only a small share of recent activity. Similar signs of overheating were visible in the spot market, although several other on-chain indicators remained neutral. Taken together, the data suggests cautious to moderately bearish sentiment rather than a clear breakdown in market structure.
Technical support comes into focus
XRP remains above its 50-day, 100-day and 200-day exponential moving averages, which are positioned between roughly $1.244 and $1.354. The clustering of these averages still provides some support for the broader trend.
However, momentum has softened. The Relative Strength Index is in the mid-50s, showing that bullish momentum has cooled without entering oversold territory. The Moving Average Convergence Divergence line remains below zero, pointing to weakening upside momentum.
The first major support level is the 200-day EMA near $1.354. A sustained move below it could bring the horizontal support around $1.300 into view, followed by the 50-day and 100-day EMAs. A deeper decline could eventually target the $1.000 area.
On the upside, XRP faces resistance near $1.900. A daily close above that level would likely be needed to revive stronger bullish momentum. Until then, softer derivatives demand and fading technical strength may continue to keep the token under pressure near its moving-average support zone.
