XRP is under heavy selling pressure as the broader crypto market struggles with uncertainty, risk aversion and waning bullish momentum. Fear continues to spread among investors and liquidity conditions are tightening, putting additional weight on previously proven assets.
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One of the clearest signs of stress now comes from data from Binance – the largest trading platform by volume – which shows that
According to the latest derivatives statistics, XRP is entering a critical phase marked by weakening sentiment and a steady loss of momentum. The sharp contraction in Open Interest reflects reduced participation from both long and short traders, indicating that the market is currently unconvinced to support a sustained price move. This shift comes at a time when XRP had previously attempted to stabilize above key psychological levels, but continued selling pressure has prevented a clean recovery.
XRP derivatives exhibit liquidity loss and bearish control
A CryptoQuant report from Arab Chain reveals a sharp deterioration in conditions for XRP derivatives, highlighting the increasing tension in the market. Open interest on Binance has fallen dramatically from record highs above $1.7 billion to almost $504 million, and briefly dropped to $473 million.
This steep contraction reflects a large outflow of liquidity from both long and short positions, indicating that traders no longer have the conviction needed to maintain a clear directional trend. The drop in OI closely follows XRP’s price drop to $2 after trading above $2.5-$3 in recent weeks. This correlation suggests that traders are not reopening their positions after they have been flushed out, leaving the market driven by short-term flows rather than sustained accumulation.
Financing rates reinforce this weakness. Over the past two months, funding has often turned negative, showing that short sellers are willing to pay to maintain their positions. Negative financing typically indicates that selling pressure is greater than buying demand, increasing the likelihood of a continued downtrend unless new liquidity enters the market.
Taken together – the collapsing Open Interest, persistent negative financing and declining price action – the data paints a picture of deep fragility. There are no visible signs of meaningful accumulation by whales or institutions, and without a turnaround in derivatives behavior, XRP remains firmly under seller control.
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XRP price shows weak recovery after collapse
XRP continues to struggle under heavy market pressure, and the chart reflects a clear loss of bullish structure. After failing to hold above $2.50-$2.70, the price collapsed sharply and recently bottomed around $1.90 before attempting a modest recovery.
The rejection of the 50- and 100-day moving averages shows sellers remain firmly in control, with both moving averages now sloping downward – a sign of continued bearish momentum. Furthermore, XRP remains below the 200-day moving average, reinforcing the broader downward trend and indicating that the market has not yet regained long-term support.
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Volume spikes during sell-offs indicate capitulation-driven moves rather than accumulation, while weaker volume on the recent green candles suggests limited conviction behind the rebound. Each recovery attempt met resistance, forming lower highs and lower lows – a classic bearish continuation pattern.
To change sentiment, XRP would need to regain the $2.40 level and consolidate above; Otherwise, the risk of a retest of $1.90 or even a drop to $1.70 remains high.
Featured image of ChatGPT, chart from TradingView.com