John Isige
FXStreet
Ripple (XRP) declines for two consecutive days as weak sentiment prevails in the broader cryptocurrency market. The cross-border token is testing support at $2.70 at the time of writing on Friday, amid concerns that the downtrend may continue ahead of the weekend.
Interest in digital assets has declined significantly over the past two weeks, aligning with the general perception that September tends to be a bearish month for crypto.
XRP has experienced a noticeable decline in retail interest, according to data from CoinGlass on the derivatives markets. The futures Open Interest (OI), which currently averages at $7.4 billion, peaked at $8.95 billion in September.
OI refers to the notional value of outstanding futures contracts. Hence, a sticky decline in the metric implies that traders are increasingly losing confidence in the token’s ability to sustain gains. It could also indicate that bets on higher XRP prices are on a free fall, increasing the chances of an extended downtrend.
XRP Open Interest | Source: CoinGlass
Despite interest in XRP fading, the XRP OI-Weighted Funding Rate remains positive at 0.0043%. This suggests that more traders are willing to take long positions in XRP, backing a short-term recovery outlook.
A consistent upward trend in this metric would support bullish sentiment, fostering an environment where bulls could push for a breakout toward the key $3.00 level.
XRP XRP OI-Weighted Funding Rate | Source: CoinGlass
Meanwhile, large-volume holders of XRP appear unfazed by the persistent drop in the price. The chart below shows that wallets holding between 1 million and 10 million XRP account for 10.48% of the total supply and are hesitant to sell, even as the price declines.
After the wallet cohort holding between 100 million and 1 billion XRP aggressively purchased XRP in August, they have stabilized their holdings around 14% of the total supply, with no signs of selling insight.
XRP Supply Distribution | Source: Santiment
The adamance exhibited by XRP whales amid prevailing market volatility highlights the confidence investors have in the token and its ecosystem. Exhaustion in retail selling could drive the next recovery phase.
XRP is currently holding below the 50-day Exponential Moving Average (EMA) at $2.93 and the 100-day EMA at $2.83, reinforcing the risk-off sentiment that began earlier this week.
The steady decline in the Relative Strength Index (RSI) to 37 indicates that bullish momentum is continuing to fade. Lower RSI readings could accelerate the losses below the short-term $2.70 support.
It could become increasingly difficult for bulls to regain control in the near term, especially with the Moving Average Convergence Divergence (MACD) indicator sustaining a sell signal since Monday. Investors will likely reduce their exposure as long as the blue line remains above the red signal line, contributing to selling pressure.
XRP/USDT daily chart
Still, a trend correction from the support at $2.70 cannot be ruled out yet. If investors buy the dip and sentiment in the broader cryptocurrency market improves, the XRP price could rebound toward the critical $3.00 level.
Ripple is a payments company that specializes in cross-border remittance. The company does this by leveraging blockchain technology. RippleNet is a network used for payments transfer created by Ripple Labs Inc. and is open to financial institutions worldwide. The company also leverages the XRP token.
XRP is the native token of the decentralized blockchain XRPLedger. The token is used by Ripple Labs to facilitate transactions on the XRPLedger, helping financial institutions transfer value in a borderless manner. XRP therefore facilitates trustless and instant payments on the XRPLedger chain, helping financial firms save on the cost of transacting worldwide.
XRPLedger is based on a distributed ledger technology and the blockchain using XRP to power transactions. The ledger is different from other blockchains as it has a built-in inflammatory protocol that helps fight spam and distributed denial-of-service (DDOS) attacks. The XRPL is maintained by a peer-to-peer network known as the global XRP Ledger community.
XRP uses the interledger standard. This is a blockchain protocol that aids payments across different networks. For instance, XRP’s blockchain can connect the ledgers of two or more banks. This effectively removes intermediaries and the need for centralization in the system. XRP acts as the native token of the XRPLedger blockchain engineered by Jed McCaleb, Arthur Britto and David Schwartz.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) continue to struggle under bearish pressure as the week wraps up, having corrected by nearly 5%, 12%, and 8%, respectively.
Story (IP), Aster (ASTER), Flare (FLR), and Avalanche (AVAX) are leading losses over the last 24 hours as the broader cryptocurrency market faces a sell-off.
Nine European Union (EU) banks are collaborating to launch a fully compliant euro-backed stablecoin, aiming to rival US-dollar-denominated crypto assets in the region.
Centrifuge has rolled out a tokenized version of the S&P 500 index, the Janus Henderson Anemoy S&P 500 Fund (SPXA), on the Base blockchain.
Bitcoin shows strength, continuing its three consecutive weeks of recovery and holding steady above $116,000 on Friday. The recovery extends following the dovish Federal Reserve stance.
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.
©2025 "FXStreet" All Rights Reserved
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer.
Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.
Opinions expressed at FXStreet are those of the individual authors and do not necessarily represent the opinion of FXStreet or its management. FXStreet has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and omissions may occur. Any opinions, news, research, analyses, prices or other information contained on this website, by FXStreet, its employees, clients or contributors, is provided as general market commentary and does not constitute investment advice. FXStreet will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.