XRP has been in a downtrend recently, and on Tuesday, it was trading around $1.38. It’s stuck at the current level as the sellers defend the $1.40 level. Any attempt to move above the $1.40 resistance level is denied and the token gets pushed down. This isn't just about XRP; the broader crypto market lacks conviction. Traders are playing it safe and pulling back on their risk after that quick recovery at the start of the month.
Activity in XRP futures has dipped, with the trading volume falling by around 30% to $2.47 billion, which is a massive slide, while the XRP Open Interest the total number of active bets slipped slightly to $2.51 billion.
This suggests traders are closing out their old trades rather than jumping into new ones. The options market shows a similar pattern; volume is down notably while traders seem to be sitting on the contracts they already have, clearly cautious to build new positions.
The positioning shows a mixed trend. Most traders are balanced, with a slight lean toward caution. But interestingly, the whales on exchanges like Binance are still holding onto their long positions betting that the price will go up. Their ratios range between 1.6 and 2.7.
It seems the pros are still leaning bullish, even if the rest of the market is hesitant. Funding rates are also slightly positive, which means those holding long positions are willing to pay a premium to hold their positions.
XRP Exchange-traded funds (ETFs) ended their fourth consecutive week in positive territory, as market sentiment continues to improve. CoinShares said that $1.2 billion flowed to exchange-traded products (ETPs) last week.
XRP ETFs brought in a total of $25 million during this period. This results in accumulated year-to-date positive inflows of $148 million.
Meanwhile, the Crypto Fear and Greed Index sits at 40, which suggests a retreat from a recent high of 62. This was the first time that this sentiment gauge entered “Greed” territory since October 2025, potentially, an early indication of an ongoing shift in investors’ risk appetite.
Also Read: Why XRP’s Consolidation Phase Could Signal a Major Buying Opportunity
On the daily chart, XRP is under a lot of pressure. XRP price has been trading below an overhead resistance trendline that’s been capping growth and keeping the price lower since late 2025.
XRP sits just below its 20-day moving average at $1.40, which reinforces that the current trend is leaning bearish. The Relative Strength Index (RSI) is at 46, just below that neutral 50 mark, which suggests weak momentum in the short-term.