Ripple (XRP) Faces Selling Pressure Amid Market Uncertainty
Ripple (XRP) is struggling to stay above a key support level. On Friday, it traded near $2.26. The token has fallen for four days in a row. This drop reflects the overall weak mood in the crypto market.
Concerns about the trade conflict between the United States and China add to the uncertainty. The lack of strong price drivers in crypto also fuels the sell-off.
Retail Demand for XRP Drops Sharply
On October 10, XRP saw the largest liquidation event in crypto history. Traders lost $611 million on XRP long positions and $90 million on shorts, according to CoinGlass.
Retail interest in XRP is low. Futures Open Interest (OI) has fallen to about $3.81 million on Friday. OI measures the total value of open futures contracts. It peaked at $10.94 billion in mid-July when XRP hit $3.66.
The steady drop in OI shows fewer buyers are active. This signals growing bearish pressure on XRP.
XRP’s Spent Output Profit Ratio (SOPR) has also declined to 1.04. SOPR shows if tokens are sold at a profit or loss. A value above 1 means investors sell at a profit. Below 1 means selling at a loss.
The SOPR has been falling since early August, when it was around 1.16. A drop toward 1 suggests weak holders are exiting. This can reduce selling pressure and may lead to a future price rebound.
Technical Analysis: Bears Gain Control
XRP’s price has fallen for four straight days. The Moving Average Convergence Divergence (MACD) shows a sell signal since October 9. The Relative Strength Index (RSI) dropped from 57 to 30, indicating stronger bearish momentum.
Key support levels to watch are $2.22, $1.90, and $1.61. These levels were tested in recent months and may attract buyers.
However, a quick rebound is possible. The RSI is near oversold levels. If market sentiment improves, XRP could rise above the 200-day Exponential Moving Average (EMA) at $2.62. Resistance lies near the 50-day and 100-day EMAs at $2.78.
