XRP price is drifting toward the $1.90 support zone as fading volume and negative funding rates suggest traders may be leaning too heavily to the short side.
Summary
- XRP trades near $1.91, with weekly losses deepening and volume dropping nearly 50%.
- Funding rates have stayed negative since December, showing short-heavy positioning.
- Price is testing the $1.90–$1.85 demand zone, where volatility has started tightening.
XRP price had extended its most recent pullback, trading near $1.91 at press time after falling about 2% over the past 24 hours. Price action stayed heavy through the session, keeping the token close to the lower end of its recent range.
Over the past week, XRP (XRP) has moved between $1.89 and $2.08 and is now down roughly 7% on the seven-day view. The decline leaves price about 47% below its July 2025 peak of $3.65, showing how sharply momentum has cooled since last year’s rally.
Spot trading has eased noticeably, with XRP’s 24-hour volume falling to around $2.2 billion, a 48% drop. The derivatives market tells a similar story. According to CoinGlass data, total derivatives volume has fallen about 40% to $3.91 billion, while open interest has dipped 2.47% to $3.31 billion.
The mix of lower volume and shrinking open interest suggests that many traders are closing out positions rather than taking on new risk.
Funding rates and sentiment may signal rebound
XRP’s funding rates are now trending lower. In a Jan. 22 analysis, CryptoQuant contributor Darkfost noted that funding across major exchanges has stayed mostly negative since December, reflecting a rise in short positioning.
What’s interesting, though, is that bearish bets grew toward the end of the rally, a pattern that has historically set the stage for sudden, sharp reversals.
Similar patterns were seen in late 2024 and again during the April 2025 pullback, when negative funding rates came before strong upward moves as sentiment shifted and short positions were unwound.
Social sentiment data reflects this change in mood as well. Santiment recently reported that XRP has entered “Extreme Fear” territory after a steep drop from early January highs.
Historically, periods of intense retail pessimism like this tend to show up near market turning points rather than during prolonged downtrends.
XRP price technical analysis
On the daily chart, XRP continues to slide toward a key support area between $1.90 and $1.85. The trend still favors sellers after the price was rejected from the $2.35–$2.40 zone earlier this month.
That said, selling pressure has begun to ease as price tests an area that has attracted buyers in the past.
XRP is still trading below its 50-day and 100-day moving averages, which sit around $2.05–$2.15 and continue to cap rallies. A daily close back above the 50-day average would be an early sign that downside control is weakening.
Price is also pressing along the lower Bollinger Band, a condition that often appears when downside momentum starts to lose steam. Band compression is beginning to show, raising the risk of a sharper move once volatility expands.
If selling keeps slowing, a brief push toward the mid-band around $2.07 would not be out of question.
Momentum indicators reflect this shift. The relative strength index is in the low 40s, but it is no longer stretched. Because momentum and MACD readings are still negative, the near-term outlook is cautious.
XRP may attempt a relief bounce if the $1.90–$1.85 range holds, fueled by short covering and rising sentiment. However, as liquidity continues to thin, a clean break below $1.85 would probably prolong the downtrend and reveal deeper support levels.
