Ripple’s XRP was steady but still under pressure on Tuesday as it hovered near the psychologically important $1.00 level. The token traded around $1.005, remaining trapped below key moving averages, while derivatives positioning turned increasingly bearish—raising the odds of another downside push if support fails.
Market indicators tied to leveraged trading pointed to growing conviction among traders that a near-term recovery is unlikely. According to CoinGlass, weakening long-to-short positioning, negative funding rates and rising open interest together suggested more capital is being directed toward short exposure.
Key takeaways
- Price move: XRP hovered near $1.005, staying below major moving averages.
- Catalyst: Derivatives data showed a bearish tilt, with long-to-short ratios near multi-week lows, negative funding, and rising open interest.
- Key implication: The $1.00 area is the immediate test; a decisive move below it would likely intensify selling.
- Upside condition: Reclaiming resistance near the 50-day moving average would be needed to shift the short-term outlook.
What drove the move
Derivatives-market signals became the focal point for traders. According to CoinGlass data, XRP’s long-to-short ratio stood at 0.94 on Tuesday, approaching the lowest level in more than a month. A reading below one indicates that short positions outnumber long positions, which traders typically interpret as bearish pressure.
The long-to-short trend also pointed to weakening confidence in an immediate rebound as XRP struggled to recover from recent losses. In addition, XRP’s funding rate turned negative, reading -0.0009% on Tuesday. Funding rates below zero generally mean short-position holders pay long-position holders to maintain leveraged exposure—often consistent with bearish positioning dominating in the derivatives market.
Open interest provided another bearish nuance. CoinGlass said open interest across XRP derivatives has risen steadily since the beginning of August, with outstanding XRP contracts reaching approximately 2.64 billion tokens. Because open interest measures unsettled derivatives contracts, increases can indicate fresh participation. When that rise coincides with deteriorating price action and negative funding, it can suggest new short exposure is being built rather than hedged away.
Technical picture around $1 and key levels
On the chart, XRP remained in a bearish short-term structure. The token was below its major exponential moving averages, with the 50-day EMA at $1.097, the 100-day EMA at $1.178 and the 200-day EMA at $1.371. With all three averages above the current price, sellers retain trend control, and those moving averages may act as resistance during any attempt to bounce.
Momentum indicators also remained subdued. The Relative Strength Index stood at 36, below the neutral midpoint of 50. That level signals weak buying pressure, though it did not yet indicate a technical oversold condition. The Moving Average Convergence Divergence indicator was negative and below its zero line, reinforcing the view that any rebound—if it comes—may be corrective rather than a confirmed reversal.
From a near-term risk perspective, the $1.00 level is the clearest support. Buyers are likely to defend that area, but a decisive daily close below $1.00 would strengthen the bearish case and could trigger additional selling. On the upside, the first meaningful resistance sits near the 50-day EMA around $1.097; a sustained move above that level could open the door for a retest of the 100-day EMA near $1.178.
Beyond that, resistance remains heavier. The article cited a horizontal barrier around $1.300, followed by the 200-day EMA at $1.371. Further up, $1.900 was identified as a more distant ceiling. Until XRP regains its key moving averages, the downside risk profile is likely to remain elevated, according to the technical framework described.
Market reaction and what traders may watch next
While the derivatives setup skewed bearish, it also raised the prospect of volatility. If short exposure continues to build, any unexpected price recovery could force some traders to unwind positions, potentially accelerating upward moves. Still, with negative funding and a long-to-short ratio below one, the baseline expectation among derivatives traders appears to favor additional weakness or, at minimum, a fragile rebound.
Looking ahead, investors will likely focus on whether XRP can hold the $1.00 support on a closing basis and whether it can reclaim the 50-day moving average near $1.097. Any follow-through in derivatives indicators—especially funding rates, the long-to-short ratio and open interest—could further confirm whether the current bearish positioning is strengthening or starting to unwind. Broader market catalysts, such as upcoming macro data and any policy-related headlines that affect risk appetite, could also influence whether XRP stabilizes or extends its correction.
