XRP recovers but weak derivatives data limits bullish conviction

Key takeaways

• XRP’s long-to-short ratio stands at a bullish 1.06 as funding rates turn negative.
• XRP holds above its 50-day and 100-day EMAs at $1.284 and $1.255.
• A daily close above the 200-day EMA at $1.353 could place $1.90 in focus.

XRP extended its recovery on Thursday after discovering support at critical technical levels. Nevertheless, conflicting funding rates, long-to-short positioning, and on-chain metrics show that traders remain hesitant about the sustainability of the rebound.

XRP hovered near $1.30 while sustaining its position above its 50-day and 100-day exponential moving averages. Securing a daily close above the 200-day EMA at $1.353 is necessary to reinforce the recovery effort.

XRP traders show mixed positioning

According to CoinGlass data, XRP’s long-to-short ratio climbed to 1.06 on Thursday, marking one of its highest levels in over a month.

A reading exceeding one indicates that traders are maintaining more long positions than short positions, pointing to a moderately bullish sentiment bias.

At the same time, funding rates add complexity to the derivatives outlook. XRP funding rates dipped into negative territory on Wednesday and registered at -0.0040% on Thursday.

Negative funding rates mean that traders holding short positions are actively paying long holders, which signals a surge in aggressive bearish positioning.

This dynamic contradicts XRP’s bullish long-to-short ratio, underscoring a deep lack of consensus among futures market participants.

Furthermore, summary indicators from CryptoQuant point toward cautious market conditions across both spot and futures sectors for XRP.

XRP exhibits early signs of overheating, while the futures market demonstrates sell-side dominance. Higher participation from retail traders could also spark increased volatility should leveraged positions become overcrowded.

Combined, these indicators imply that XRP has yet to generate sufficient steady demand to validate a long-lasting recovery.

XRP holds above the $1.25–$1.28 support zone

Trading around $1.30 on Thursday, XRP maintained a neutral, range-bound technical configuration. The cryptocurrency continues to trade just above its 50-day EMA ($1.284) and 100-day EMA ($1.255), forming a primary demand corridor roughly between $1.25 and $1.28.

The Relative Strength Index hovers close to 46, reflecting neutral-to-weak momentum. Concurrently, the Moving Average Convergence Divergence indicator stays beneath zero, signaling that bullish momentum has not yet fully rebounded.

A breakdown underneath this cluster of moving-average supports might risk a drop toward the psychological $1 milestone.

Conversely, the 200-day EMA at $1.353 serves as the primary near-term technical barrier for XRP. Achieving a daily close past this threshold would strengthen the technical posture and potentially clear a runway toward the next notable horizontal resistance close to $1.90.

If the asset fails to push past $1.353, XRP will likely remain confined to its current trading range, leaving the $1.30 region exposed to subsequent retracements.

Frequently Asked Questions

What is XRP’s current long-to-short ratio?

XRP’s long-to-short ratio is at a bullish 1.06, approaching its highest level in over a month.

What are the key support levels for XRP?

XRP is supported by its 50-day and 100-day EMAs at $1.284 and $1.255, forming a demand zone between $1.25 and $1.28.

What resistance level does XRP need to clear?

The 200-day EMA at $1.353 is XRP’s primary near-term resistance. A daily close above this level could target $1.90.

Why are derivatives data showing mixed signals?

While the long-to-short ratio is bullish at 1.06, funding rates turned negative (-0.0040%), indicating aggressive bearish positioning and a lack of consensus among traders.