XRP News Today: XRP Faces Impending Death Cross as Bearish Pressure Outpaces Retail Interest

Ripple's

is under increasing strain as both on-chain metrics and technical signals suggest a sustained downward trend, with retail interest remaining weak amid ongoing volatility in the broader cryptocurrency market. The token, currently valued near $2.40, has experienced a notable decline in its derivatives market since the steep drop on October 10, which saw over $19 billion in crypto assets liquidated. According to CoinGlass, open interest (OI) in XRP futures has dropped sharply to $3.54 billion from its October high of $9.09 billion, indicating traders are less willing to take on risk, as reported by . The funding rate weighted by OI now sits at 0.0010%, reflecting a move toward short positions and further limiting XRP's upward potential, according to the same FXStreet report.

Technical signals further support the bearish scenario. XRP's Relative Strength Index (RSI) is around 41, edging closer to oversold levels, while the Moving Average Convergence Divergence (MACD) indicator is nearing a bearish crossover as the blue line approaches the red signal line.

The token is trading below major moving averages, including the 200-day EMA at $2.60, heightening fears of a breakdown beneath the crucial $2.40 support level highlighted in the FXStreet analysis. Should this level fail, the price could quickly fall toward $2.18, a previous support area, potentially resulting in a 10% short-term decline.

Adding to these headwinds, Ripple's monthly release of 1 billion XRP tokens has sparked concerns about liquidity. Although Ripple describes this as part of its escrow strategy to foster ecosystem growth, some market observers are wary of increased short-term selling pressure. XRP's circulating supply has reached 60.1 billion tokens, and its price remains 37% below its 2018 all-time high, according to a

. Analysts note that the effect of these unlocks depends on overall market sentiment and Ripple's ability to use the tokens for strategic partnerships, as stated in the Coinpedia article.

Despite the current negative sentiment, XRP's use in institutional applications provides some optimism. Ripple's On-Demand Liquidity (ODL) platform, which utilizes XRP for international payments, has facilitated $1.3 trillion in transactions through more than 300 partners, including Santander and SBI, as reported by a

. Furthermore, XRP's involvement in blockchain-based B2B payments—showcased by platforms like Tranglo—demonstrates increasing adoption for faster and more cost-effective liquidity solutions, according to a . However, these advancements have not yet spurred greater retail participation, with daily active accounts on the XRP Ledger holding steady at around 25,000, significantly trailing behind rivals such as , as noted in the CryptoBasic article.

The bearish sentiment is further reinforced by the impending "death cross," a technical formation where the 50-day simple moving average (SMA) falls below the 200-day SMA. At present, XRP's 50-day SMA is at $2.74 and is nearing the 200-day SMA at $2.55. Analysts caution that confirmation of this pattern could prompt further selling, as highlighted in a

. This situation is compounded by broader economic uncertainties, such as expectations for Federal Reserve policy and ongoing geopolitical tensions, which continue to pressure risk assets, according to a .

Nonetheless, some long-term investors believe that XRP's growing institutional adoption and Ripple's move into custody and treasury services could help stabilize its price. Ripple president Monica Long has stressed the company's commitment to private growth and targeted acquisitions, dismissing rumors of an imminent IPO in an

. Meanwhile, initiatives like XRP Tundra, which brings NFTs into DeFi staking, point to new and evolving uses for the asset, as mentioned in a .

In conclusion, XRP currently faces a challenging environment, with technical signals, low retail participation, and liquidity issues all weighing against a sustained recovery. While institutional usage and innovation offer some hope for the future, investors must contend with a market increasingly characterized by caution and downward momentum.