XRP slide as bearish derivatives data limits recovery

Key takeaways

• XRP has dipped more than 2% over the past few days. 
• On-chain data shows sell-side dominance in XRP’s market. 
• XRP’s long-to-short ratio of 0.83 and negative funding rate reflect bearish positioning.
• XRP is approaching critical support at its 200-day EMA near $1.354.

Ripple (XRP) remains under pressure on Thursday after falling more than 2% this week. The cryptocurrency is approaching an important support zone that could determine its next directional moves. However, a combination of sell-side activity, cautious on-chain signals, and mixed derivatives positioning suggests that its near-term upside may remain limited.

XRP on-chain data tilts bearish

CryptoQuant’s market summary indicates a cautious outlook for both altcoins. XRP’s futures market is showing signs of overheating and sell-side dominance, while retail traders account for some of the current activity. Similar overheating conditions are emerging in the spot market, although several other indicators remain neutral.

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