XRP Holds Demand Zone as Momentum Weakens – Here is Why the Next Move Could Be Sharp

• XRP trades near $1.98 as volume and momentum remain subdued
• Analysts see accumulation near ascending channel support
• Rising open interest suggests a volatility breakout may be approaching

Ripple’s XRP is trading around $1.98, down roughly 1.55% over the past 24 hours. The pullback reflects ongoing short-term weakness, with price struggling to mount any meaningful recovery attempts. Right now, sentiment feels cautious, almost hesitant, as traders wait for a clearer signal before committing either way.

Activity has cooled off alongside price. Trading volume dropped nearly 21% to about $1.39 billion, suggesting both buyers and sellers are stepping back for the moment. On a weekly basis, XRP is down 4.66%, keeping pressure on the asset and reinforcing the idea that momentum hasn’t fully turned yet.

Ascending Channel Support Comes Into Focus

Analyst Butterfly recently pointed out that XRP is testing the lower boundary of an ascending channel on the higher timeframe. According to the analysis, signs of accumulation are starting to show up around this support zone. Buying pressure isn’t explosive, but it’s slowly building, which often happens before a larger move.

A clean hold here could open the door to a sharper directional shift. On the flip side, losing this channel support would raise the risk of deeper downside. Another analyst, BitGuru, noted that XRP recently exited a long consolidation phase and is now holding a defined demand zone. Price action has steadied over recent sessions, hinting that selling pressure may be fading, at least for now.

Key EMAs Still Cap the Upside

From a technical standpoint, XRP remains below all major exponential moving averages. The 20-day EMA near $2.08 has been capping short-term bounces, while the 50-day, 100-day, and 200-day EMAs sit higher at roughly $2.22, $2.38, and $2.45. Together, these levels form a thick resistance band above current price.

Momentum indicators aren’t offering much relief yet. The MACD remains in negative territory, with both the MACD and signal lines sitting below zero. The histogram is slightly negative as well, showing bearish momentum is still present, even if it’s not accelerating aggressively. A bullish crossover hasn’t materialized, and that keeps caution in play.

Derivatives Data Hints at Rising Volatility

Interestingly, derivatives metrics are telling a slightly different story. CoinGlass data shows trading volume climbing about 12.6% to $2.62 billion, while open interest rose 4.33% to $3.73 billion. That combination usually suggests traders are positioning for increased volatility, even if price hasn’t moved much yet.

The OI-weighted funding rate currently sits at -0.0047%, indicating a mild short bias in the market. Nothing extreme, but enough to show positioning is leaning cautious. XRP now sits at a critical support area, where momentum and participation could soon decide the next move, up or down.

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