XRP falls under $1.30 support amid rising bearish sentiment

Key takeaways

• XRP slipped beneath $1.30 on Thursday as the ongoing bearish trend continued.
• Tracked data reveals a long-to-short ratio of 0.82, highlighting a bearish market stance.
• To enhance its near-term technical outlook, XRP must break back through the resistance zone spanning from $1.333 to $1.372.

XRP struggles after Fed’s cautious hold

XRP faced continued downward pressure on Thursday, with persistent selling activity and bearish derivatives positioning holding back any recovery efforts.

Trading near $1.29, XRP slid under the closely watched $1.300 support mark. This weakness came on the heels of the Federal Reserve’s choice to maintain interest rates at 3.75%–4.00%.

Despite interest rates remaining untouched, ongoing worries over inflation alongside a hawkish tone dampened enthusiasm for risk assets.

Data from CoinGlass reveals that XRP’s long-to-short ratio sits at 0.82, nearing its lowest level in over a month.

Readings under one signify that short positions outnumber long positions within the analyzed dataset, underlining cautious market sentiment for both tokens.

Conversely, funding rates paint a somewhat different picture. XRP maintained a positive funding rate of 0.0036%, holding steady after ticking upward on October 16.

This positive rate implies that long traders were paying short traders, pointing to sustained interest in leveraged bullish exposure despite the lower long-to-short ratio.

While this divergence makes XRP’s derivatives indicators mixed, bears currently maintain a firm grip on the market.

Summary indicators from CryptoQuant point to a dominance of sellers across both spot and futures markets for XRP.

Regarding XRP, the platform also highlights large whale orders alongside a heated market environment. While large transactions alone do not confirm whether major holders are buying or selling, the accompanying selling pressure supports the subdued outlook.

Similarly, XLM spot and futures markets demonstrate that sellers retain the upper hand, indicating its latest bounce has failed to attract enough demand to fuel a sustainable rally.

XRP could record further losses as it drops below the $1.300 support

The daily XRP/USD chart maintains a bearish outlook now that the token has dipped beneath the horizontal support floor close to $1.300.

A daily close below this threshold would undermine the recent trading channel and elevate the probability of a more severe correction.

Sitting at 40, the daily Relative Strength Index rests below the neutral 50 threshold, showing that buying momentum remains weak.

Meanwhile, the Moving Average Convergence Divergence indicator has edged slightly into positive territory, offering an early hint of softening bearish momentum, even though prices continue to trade below crucial moving averages.

The primary upside hurdle for XRP is the 100-day Exponential Moving Average positioned around $1.333. Further up, the 50-day EMA at $1.357 and the 200-day EMA at $1.372 create subsequent layers of resistance.

Successfully conquering this resistance cluster would offer clearer confirmation that buyers are stepping back in. Additional barriers reside at $1.540 and $1.900, though both are quite far from current price levels.

At present, XRP trading just above support leaves little margin for additional selling pressure. Successfully holding the $1.300 line and clearing nearby moving averages stand as the primary tests for achieving a lasting recovery.

Frequently Asked Questions

Why did XRP drop below $1.30?

XRP dropped below $1.30 due to persistent selling activity, bearish derivatives positioning, and a broader dampening of risk appetite following the Federal Reserve’s decision to hold interest rates steady alongside a hawkish undertone.

What does the long-to-short ratio of 0.82 mean?

A long-to-short ratio of 0.82 indicates that short positions outnumber long positions within the tracked dataset, signaling cautious and bearish positioning among traders.

What resistance levels must XRP reclaim for a recovery?

XRP needs to break through the resistance cluster between $1.333 (the 100-day EMA), $1.357 (the 50-day EMA), and $1.372 (the 200-day EMA) to improve its near-term technical outlook and signal that buyers are regaining control.