XRP Price Drops Amid Weak Market Sentiment
Ripple’s XRP has fallen for two days in a row. The price is testing support near $2.70 as the week ends. This drop comes as the overall crypto market shows weak sentiment. Interest in digital assets has dropped over the past two weeks. September is often a bearish month for cryptocurrencies.
XRP Derivatives Market Shows Signs of Weakness
Data from CoinGlass shows that XRP futures Open Interest (OI) has fallen to $7.4 billion. This is down from a peak of $8.95 billion in September. Open Interest measures the total value of active futures contracts. A decline in OI suggests traders are less confident about XRP’s price rising. It may also mean fewer bets on higher prices, increasing the chance of a continued downtrend.
Despite this, the XRP OI-Weighted Funding Rate is still positive at 0.0043%. This means some traders expect a short-term price recovery. If this rate rises steadily, it could support a bullish move toward $3.00.
Large XRP holders remain calm during the price drop. Wallets holding 1 million to 10 million XRP control 10.48% of the supply and are not selling. Wallets with 100 million to 1 billion XRP hold about 14% of the supply and have kept their positions stable since August. This shows confidence among big investors and may limit further selling pressure.
Technical Analysis Suggests Downtrend May Continue
XRP is trading below its 50-day EMA ($2.93) and 100-day EMA ($2.83). This signals ongoing risk-off sentiment. The Relative Strength Index (RSI) has dropped to 37, showing weakening bullish momentum. A lower RSI could push the price below the $2.70 support level.
The Moving Average Convergence Divergence (MACD) indicator has shown a sell signal since Monday. This may cause more investors to sell XRP. However, a price rebound is still possible if buyers step in at $2.70 and overall crypto sentiment improves. A recovery could push XRP back toward the $3.00 mark.
