XRP Price Struggles Amid Weak Market Sentiment
Ripple (XRP) continues to struggle, trading just above $2.40 on Monday. The wider cryptocurrency market is facing strong selling pressure. This is due to a risk-off mood among investors. Since the big sell-off on October 10, demand for XRP has stayed low. On that day, over $19 billion in crypto assets were sold. XRP’s derivatives market also shows low interest from traders.
Low Retail Interest and Falling Futures Activity
XRP’s technical setup is weakening as retail demand declines. Data from CoinGlass shows that XRP’s Open Interest (the value of active futures contracts) is about $4.33 billion now. This dropped sharply from $9.09 billion in October. If investors keep reducing risk, XRP’s price could fall to $2.18, a support level last tested on October 17.
The XRP funding rate for futures has also dropped to 0.0010% from 0.0085% on Sunday. This suggests traders are closing long positions and increasing short bets. As a result, XRP lacks the upward momentum needed for recovery.
Technical Indicators Show Bearish Signs
XRP faces strong downward pressure around the $2.40 support level. The Relative Strength Index (RSI) is at 41 and moving lower, signaling rising bearish momentum. The Moving Average Convergence Divergence (MACD) indicator may soon trigger a sell signal. This happens if the MACD line crosses below the signal line.
Price sits below key moving averages: the 200-day EMA ($2.60), 50-day EMA ($2.64), and 100-day EMA ($2.72). This adds to the bearish outlook. If XRP drops below $2.40 with a daily close, it could fall by 10%. In that case, support at $2.18 and $1.90 would be key levels to watch.
However, if the $2.40 support holds, a short-term bounce might occur. A shift to bullish sentiment would need XRP to break above the 200-day EMA and the descending trendline from its July high of $3.66.
