The XRP market is currently experiencing a combination of negative signals that increase risks for the asset's price. On higher timeframes, a weakening bullish momentum is visible, and trading participants are behaving more cautiously. Together, these factors create an unfavorable backdrop for short- and medium-term price dynamics.
Negative Factors in the XRP Market
On the weekly chart, a pronounced bearish divergence is observed between the XRP/USD price and the RSI indicator, where the RSI shows declining peaks while the price attempts to hold near local highs. This pattern indicates a decrease in buying power and loss of momentum, confirming traders' caution. Additionally, CryptoOnChain experts explicitly note increasing selling pressure, which intensifies the overall negative sentiment.
This is partially reflected in discussions about recent key level breakouts: a detailed review of movements and important points can be found in the article on the break below $1.93, which provides additional support and resistance marks. The coincidence of divergence and rising seller activity raises the likelihood of further consolidation or correction without a clear impulse recovery.
Key Support and Resistance Levels
The $1.8 area is viewed by the market as a key level, both technically and psychologically significant. Currently, the price regularly tests this range but lacks a clear and confident rebound, increasing the level's importance for traders and investors. Analysts believe that losing this area could intensify selling pressure and accelerate price declines within the current negative scenario.
For a detailed view of the support status and its significance, see the analysis discussing the threat to support around $1.87: support at $1.87 under threat. Monitoring price reactions in this zone will help determine whether the current structure holds or a larger sell-off begins.
Derivatives Market Data
The derivatives market provides further confirmation of weakening interest in the instrument: XRP open interest on Binance has decreased to $450 million, the lowest level since November 2024. Researchers note that this sharp decline reflects significant capital outflow and the closing of leveraged positions. This points to reduced trader engagement and diminished expectations of price growth.
Analysts' Forecasts and Expectations
Analysts acknowledge weakening growth expectations and a tendency among market participants to lock in positions. The combination of bearish divergence, pressure on the $1.8 level, and historically low open interest forms the basis for a consistently negative scenario under current conditions. Experts emphasize increased caution in assessments and the need for confirming signals to change the trend.
Why This Matters
If selling pressure persists and the key $1.8 level is broken without a confident rebound, it could lower the asset's price and reduce the ruble equivalent of mining or trading revenue. For miners with any number of devices, this means profitability at the same power and tariffs will be affected, making it important to understand market conditions and position liquidity. Additionally, the drop in open interest indicates less activity among derivatives participants, usually accompanied by higher volatility during sharp moves.
Finally, increasing seller pressure and cautious trading behavior complicate short-term attempts at price growth, so risk control and readiness to adapt trading conditions remain priorities for all market participants.
What to Do?
- Monitor price reaction at the $1.8 level and avoid increasing exposure without confirmed rebound.
- Watch RSI dynamics on the weekly chart: growing divergence signals the need for heightened attention.
- Track open interest on Binance and other derivatives data as indicators of market engagement.
- Reducing leverage and limiting margin positions can help lower the risk of forced liquidations during intensified sell-offs.
- Plan threshold levels for position taking or scaling in advance and act according to a pre-approved risk strategy.