XRP stays below $1.30 as sellers retain control

Core takeaways

• XRP trades at under $1.25 on Tuesday as it seeks to regain lost ground.
• CryptoQuant data highlights persistent sell-side dominance in XRP, with large whale orders creating uncertainty about XRP's prospects.
• XRP encounters near-term resistance at $1.285 and $1.30, while a sharper drop could push attention to the $1.16 and $1.00 support levels.

Selling pressure on XRP continues on Tuesday as the token finds it challenging to recover from its latest declines.

XRP changes hands at below $1.25, and buyers struggle to lift the price past $1.30.

The data from CoinGlass and CryptoQuant is mixed. Funding rates hint that some traders continue to anticipate a recovery, yet derivatives positions and on-chain events point to persistent seller influence.

Technical indicators likewise display scant evidence of a sustained turnaround, leaving both digital currencies open to additional declines.

XRP derivatives data reveals divided market sentiment

Derivatives traders seem to be growing more cautious about XRP's near-term outlook, yet not all metrics align.

On Tuesday, CoinGlass reported XRP's long-to-short ratio at 0.84. A figure under 1, this indicates that short positions outnumber long ones in the tracked market.

The data indicates a bearish lean in positioning, as traders reveal little confidence in an immediate price rebound.

Funding rates, however, paint a different picture. XRP's funding rates turned positive on October 30 and have stayed above zero since.

On Tuesday, XRP's funding rate was 0.0073%. A positive funding rate indicates that long-position holders are compensating short-position traders, signaling a readiness by some participants to sustain a bullish stance.

The difference between the long-to-short ratios and the funding rates implies that traders are still split on the next significant price move.

Short positioning implies caution, while positive funding suggests some leveraged traders still expect a bounce-back.

Outside derivatives, on-chain and trading activity data similarly point to persistent selling pressure on XRP and Stellar.

CryptoQuant's market summary shows that XRP's spot and futures markets exhibit sell-side dominance along with unusually large whale orders.

When liquidity is thin, large orders from major participants can sway short-term price shifts.

CryptoQuant also notes heating conditions in XRP's spot market, indicating increased trading activity amid weak sentiment.

Combined, these indicators point to a careful market environment where sellers still hold an advantage.

XRP technical outlook: Bears retain dominance below $1.30

XRP trades near $1.2487 on Tuesday, remaining firmly under bearish pressure.

The token currently trades beneath its key Exponential Moving Averages (EMAs): the 50-day EMA at $1.336, the 100-day EMA at $1.324, and the 200-day EMA at $1.365.

Being beneath all three EMAs implies the larger trend is weak, and recovery attempts will probably encounter pushback.

XRP is also struggling under a descending trendline close to $1.285 and the psychological barrier at $1.30.

These two barriers are the primary obstacles buyers need to get beyond to improve the near-term outlook.

Momentum gauges provide little encouragement for bulls. The Relative Strength Index (RSI) is near 37, implying subdued buying momentum.

Still, the RSI has not reached oversold territory, meaning further downside is possible before selling pressure becomes technically extended.

At the same time, the Moving Average Convergence Divergence (MACD) stays slightly negative, confirming the dominant bearish sentiment.

On the upside, XRP first needs to recapture the descending trendline resistance near $1.285.

A sustained push above that level could open the door for another try at $1.30, which has become a key short-term resistance zone.

If buyers succeed in breaking above $1.30, focus could turn to the 100-day EMA at $1.324 and the 50-day EMA at $1.336.

The 200-day EMA at $1.365 is another notable hurdle. A clear move above this cluster of EMAs would bolster the case for a broader recovery towards $1.54 and possibly $1.90.

On the downside, immediate support is at $1.16. A breach below this level could speed up selling pressure and reveal the psychological $1.00 barrier, where buyers might try to support the price.

Currently, XRP's technical structure remains bearish, and the failure to recover $1.30 leaves sellers in control.