XRP, like the broader cryptocurrency market, saw a modest recovery on Tuesday, but underlying on-chain data and technical indicators continue to point to a market dominated by sellers. The token is currently trading around $1.097, still below its major moving averages, as buyers fail to establish a convincing reversal.
On-chain data highlights persistent selling pressure
According to CryptoQuant, XRP's spot and futures markets are witnessing significant whale activity, with large orders accompanied by sell-side dominance. The spot market is described as 'heating up,' indicating elevated trading activity as the correction continues. This combination of persistent selling, weak technical momentum, and heightened spot activity suggests that buyers have yet to gain the upper hand.
Derivatives data from CoinGlass shows a mixed picture. The long-to-short ratio has risen to 1.01, slightly above the neutral level of one, indicating that long positions marginally outnumber shorts. This suggests some traders are positioning for a potential recovery. However, Open Interest has declined by 2.6% over the last 24 hours to $2.44 billion, while the funding rate has turned positive at 0.0095%. These signals reflect uncertainty among traders.
Technical outlook remains bearish
XRP's technical setup remains firmly bearish. The token is trading below its 50-day EMA at $1.294, the 100-day EMA at $1.303, and the 200-day EMA at $1.365. This stack of moving averages forms a significant resistance zone above the current price, underscoring the strength of the downtrend.
Momentum indicators also point to weakness. The daily Relative Strength Index (RSI) is near 26, placing XRP in oversold territory, while the Moving Average Convergence Divergence (MACD) remains negative, indicating continued bearish momentum.
If buying interest fails to materialize, sellers could push XRP toward the psychological $1 support level. This area is a critical technical and psychological threshold where buyers may attempt to defend the price. A decisive break below $1 would weaken the market structure further and open the door to additional losses.
Despite the bearish conditions, a short-term recovery is possible if buyers capitalize on oversold momentum. The first major resistance is at $1.160, which bulls must reclaim to signal an initial improvement. A sustained move above this level could pave the way for a broader advance toward the $1.300 resistance region.
However, that zone is laden with technical barriers. The 50-day EMA at $1.294 sits close to horizontal resistance at $1.300, while the 100-day EMA at $1.303 adds further selling pressure. A convincing breakout above this cluster could encourage buyers to target the 200-day EMA at $1.365. Beyond that, resistance levels at $1.540 and $1.900 would require a substantial recovery in market sentiment to be reached.
For now, the combination of bearish momentum indicators and continued sell-side dominance suggests that any rebound could face significant resistance. Traders will be closely watching the $1 support level as the next key battleground.
This article is for informational purposes only and does not constitute financial advice.
