XRP was trading just above $1.30 on Friday as buyers attempted to hold a technical support zone after the token’s recovery lost momentum. The price remains below the $1.50 level reached on Monday, while weaker futures activity points to reduced speculative demand.
Open interest declines as traders reduce exposure
XRP futures open interest fell to 2.12 billion XRP from 2.25 billion the previous day. The figure is also well below the 2.78 billion XRP recorded on August 15. A sustained decline in open interest can indicate that traders are closing leveraged positions or showing less willingness to initiate new ones, potentially making it harder for XRP to build momentum toward $1.50.
Market sentiment has also been affected by the U.S. Senate’s failure to advance the CLARITY Act and the Federal Reserve’s decision to raise its benchmark interest rate by 25 basis points. The new target range is 3.75% to 4.00%. Although the move was widely expected, higher borrowing costs can gradually reduce liquidity and weigh on risk-sensitive assets such as cryptocurrencies.
Ripple points to XRP’s legal position
Ripple has argued that XRP retains a meaningful legal advantage following its long-running court battle with the U.S. Securities and Exchange Commission. The company maintains that the litigation established that XRP is not inherently a security, giving the token and Ripple a clearer legal position even without a comprehensive U.S. digital-asset framework.
Ripple also acknowledged that the CLARITY Act could have provided greater certainty for the wider crypto industry. However, the company said XRP remains on comparatively firm legal ground relative to many other digital assets.
Technical levels to watch
XRP is currently holding above its 50-day and 100-day exponential moving averages, located near $1.28 and $1.26 respectively. This $1.26-$1.28 area is the main support cluster. The 200-day EMA, near $1.36, is the first significant resistance level.
A decisive move above $1.36 could improve momentum and reopen the path toward $1.50. Conversely, a daily close below the $1.26-$1.28 support zone would strengthen the bearish outlook and raise the risk of a deeper correction.
Momentum indicators remain mixed but lean bearish. The Moving Average Convergence Divergence indicator has moved further below zero, with its negative histogram indicating weakening bullish momentum, while the Relative Strength Index stands at 49, just below its midpoint.
