XRP was trading near $1.40 on Tuesday after buyers defended support at $1.38, putting the token back in focus as it attempts to overcome resistance at $1.42. XRP remained down about 1% for the day following an unsuccessful push through the $1.50 area last week.
A sustained daily close above $1.42 could strengthen the short-term setup and bring $1.50 back into view. A break above that level would expose the next major resistance near $1.70. Failure to clear the immediate barrier, however, could leave XRP vulnerable to renewed profit-taking and a retreat toward lower support.
Open interest rises but remains below its recent peak
Data from CoinGlass showed XRP perpetual futures open interest edging up to 2.24 billion XRP, compared with 2.23 billion XRP the previous day and 2.20 billion XRP on Sunday. Open interest measures the total number of unsettled futures contracts and can help indicate whether traders are adding exposure.
The increase suggests that derivatives participation is stabilizing, but current positioning remains well below the 2.78 billion XRP recorded on August 15. That gap indicates leverage has not fully recovered from its recent decline. A continued rise in open interest alongside higher prices could support a move above $1.40, while falling open interest would point to weaker conviction and increase the risk of another pullback.
The open-interest-weighted funding rate remained positive at approximately 0.01%, a level it has held near since August 28. Positive funding means long-position holders are paying traders on the short side, generally signaling stronger demand for bullish exposure. It can also warn of crowded positioning if the price fails to advance, potentially increasing the risk of long liquidations.
Technical momentum has moderated
Market sentiment provided an additional tailwind, with the Crypto Fear and Greed Index at 69 on Tuesday, within the “Greed” zone but below Monday’s reading of 71. Elevated optimism may encourage further exposure to assets such as XRP, although it can also leave the market more exposed to profit-taking if prices stall.
XRP remains above its key exponential moving averages, preserving its broader bullish structure. The Relative Strength Index was near 59, indicating that buyers still held an advantage while momentum remained below the levels seen during the earlier rally. The Moving Average Convergence Divergence indicator had slipped modestly into negative territory, pointing to fading upside momentum rather than confirming a decisive bearish reversal.
If XRP cannot break above $1.42, the 200-day EMA near $1.36 is the first major support level to watch. A daily close below it could increase selling pressure and bring the 50-day EMA around $1.26 and the 100-day EMA near $1.24 into focus. Together, those moving averages form a broader demand zone that could attract buyers during a deeper correction.
For now, the short-term direction depends on whether buyers can turn the $1.40 area into support and secure a close above $1.42. Such a move would improve the prospects of a return to $1.50 and possibly $1.70, while another rejection could send XRP back toward $1.38 and the 200-day EMA.
