Hassan Maishera
TL;DR
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XRP has fallen over 8% this week and is testing the key psychological support level at $1.00.
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More than 97% of XRP liquidations over the past 24 hours were long positions, highlighting a sharp shift in market sentiment.
XRP Falls More Than 8% as Crypto Market Sell-off Intensifies
Ripple's XRP is trading near the psychologically important $1 support level on Friday after declining more than 8% this week amid a broad cryptocurrency market correction.
The token's latest decline comes as Bitcoin plunged to a new yearly low of $58,115 on Thursday, triggering widespread liquidations across the digital asset market. With bearish momentum building, traders are closely watching whether XRP can defend the $1.00 level or extend its downward trend.
The sharp decline has forced a significant number of leveraged traders out of the market.
According to CoinGlass data, approximately $43.97 million worth of XRP leveraged positions were liquidated over the past 24 hours. Long positions accounted for more than 97% of those liquidations, highlighting how heavily traders had been positioned for additional upside before the market reversed.
The wave of forced liquidations reflects the rapid shift in sentiment as cryptocurrencies came under pressure alongside broader risk assets.
Bearish Derivatives Data Points to Continued Downside Risk
Derivatives indicators continue to favor sellers despite XRP holding above the $1 threshold.
CoinGlass data shows XRP's long-to-short ratio has fallen to 0.94, approaching its lowest reading in more than a month.
A ratio below 1 indicates that short positions outnumber long positions, suggesting traders are increasingly betting on further price declines.
Funding rates also remain negative, with the latest reading at -0.0042%. Negative funding rates indicate that short sellers are paying long holders to maintain their positions, another sign that bearish sentiment continues to dominate the derivatives market.
Together, these indicators suggest that traders remain cautious about XRP's short-term outlook.
Despite the weak derivatives data, institutional demand continues to offer a degree of optimism.
According to CoinGlass’s ETF page, spot XRP exchange-traded funds (ETFs) have attracted net inflows of approximately $7.36 million so far this week.
If Friday does not record significant outflows, XRP ETFs will post their eighth consecutive week of positive inflows since May 8.
Continued institutional buying could help cushion selling pressure and provide longer-term support if market conditions begin to stabilize.
XRP Technical Analysis: All Eyes Remain on the $1 Support Level
XRP is trading around $1.03 at the time of writing while remaining firmly below several key moving averages, reinforcing the prevailing bearish trend.
The token currently trades beneath the 50-day Exponential Moving Average (EMA) at $1.225, the 100-day EMA at $1.328, and the 200-day EMA at $1.541.
Price also remains below a descending parallel channel near $1.201, indicating that sellers continue to control the broader market structure.
Momentum indicators also favor the downside. The Relative Strength Index (RSI) is hovering near the 30 level, placing XRP close to oversold territory.
Meanwhile, the Moving Average Convergence Divergence (MACD) remains below the zero line, although the shrinking histogram suggests bearish momentum is no longer accelerating.
The $1.00 psychological level remains the most important support for XRP in the near term.
A decisive daily close below this level could trigger another wave of selling and extend the existing downtrend.
On the upside, the first resistance is located around the descending channel near $1.20, followed by the 50-day EMA at $1.225.
Additional resistance levels are found at the $1.30 horizontal barrier, the 100-day EMA at $1.328, and the 200-day EMA at $1.541.
Until XRP reclaims these technical levels, the broader market structure is likely to remain bearish. However, sustained ETF inflows and improving market sentiment could eventually provide the catalyst needed for a recovery if buyers successfully defend the crucial $1 support zone.
