XRP Market Cools as Leverage Unwinds Despite Strong Ledger Activity

• XRP trades below key moving averages, limiting upside and keeping bearish pressure intact.
• Futures and spot flows show caution as leverage drops and net outflows persist.
• Ripple emphasizes adoption and transaction volume over price in gauging XRP’s utility.

XRP continues to draw close attention as traders weigh technical weakness against claims of growing real-world usage. On the 4-hour chart, XRP trades near $1.88, holding above recent lows after a sharp rebound. However, broader market structure still reflects caution, as sellers remain active near key resistance zones. 

XRP Price Struggles Below Key Resistance Levels

XRP has stabilized after rebounding from the $1.77–$1.80 demand zone. Buyers stepped in aggressively at those levels. However, upside progress remains limited. Price continues to trade below all major moving averages, which cluster between $1.91 and $2.05. This alignment keeps downward pressure intact.

Besides that, volatility bands show XRP trading near the lower to middle range. This positioning reflects weak bullish momentum. Short-term resistance sits at $1.89–$1.91, where previous breakdowns occurred. Consequently, rallies into this area often attract sellers.

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Additionally, the $1.97–$2.00 zone marks a key supply area aligned with short-term moving averages. A stronger barrier appears near $2.03–$2.05, which aligns with a major Fibonacci level. Hence, XRP needs a decisive move above $2.05 to change sentiment. Failure to hold $1.86 risks renewed pressure toward $1.80 or lower.

Derivatives and Spot Flows Signal Caution

Significantly, derivatives data shows a sharp shift in trader behavior. XRP futures open interest surged during the previous rally but has since declined steadily. Open interest now sits near $3.4 billion, down sharply from earlier peaks. This drop reflects reduced leverage and fading speculative interest.

Moreover, spot market flows reinforce this cautious outlook. Recent sessions show persistent net outflows from exchanges. Brief inflow spikes appear, but they fade quickly. The latest data shows roughly $3.7 million in net outflows. This trend suggests traders sell into rebounds rather than accumulate aggressively.

Ripple CTO Stresses Adoption Over Price

However, Ripple CTO David Schwartz has pushed back against judging XRP solely by price movements. He argues that real adoption shows through usage metrics, not short-term market swings. According to Schwartz, the XRP Ledger has processed more than four billion transactions.

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Additionally, these settlements complete within seconds and cost nearly nothing. Schwartz highlights liquidity as a core strength. Deep liquidity enables large value transfers across borders efficiently. Consequently, he views XRP as a practical financial tool rather than a speculative asset.

Technical Outlook for XRP Price

Key levels remain clearly defined as XRP trades near a pivotal inflection zone

XRP continues to consolidate after a sharp corrective move, with price stabilizing near the $1.88 region. The broader structure remains bearish on the higher timeframes, yet short-term price action shows early signs of compression. This setup suggests a potential volatility expansion if key levels break.

Upside levels: Immediate resistance stands at $1.89–$1.91, where prior support flipped into supply. A sustained breakout could open a move toward $1.97–$2.00, followed by $2.03–$2.05, which aligns with the Fibonacci 0.5 retracement and declining moving averages. A clean reclaim of $2.05 would shift momentum toward a recovery phase and expose $2.09–$2.18 as the next upside target zone.

Downside levels: Near-term support rests at $1.87–$1.86, which currently acts as the consolidation base. A loss of this level would likely trigger a retest of $1.82–$1.80, the lower range boundary. Below that, $1.77 remains the critical demand level and cycle low that buyers must defend to prevent deeper downside continuation.

Resistance ceiling: The $1.97–$2.05 EMA cluster represents the key level to flip for medium-term bullish momentum. As long as XRP trades below this zone, rallies are likely to face selling pressure.

Technically, XRP appears to be compressing beneath descending resistance while holding a defined demand base. This structure resembles a tightening range rather than a confirmed reversal, increasing the probability of a directional move once price escapes the range.

Will XRP Move Higher?

XRP’s near-term outlook depends on whether buyers can hold $1.86 and generate enough momentum to challenge the $1.97–$2.05 resistance band. Continued compression, declining open interest, and weak spot inflows suggest caution remains dominant. However, a successful breakout above $2.05 could attract renewed participation and shift sentiment.

Failure to defend $1.86, on the other hand, risks exposing XRP to $1.80 and potentially $1.77 again. For now, XRP remains at a decisive technical crossroads, where confirmation from price and flows will define the next leg.

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