XRP clings to $1 as long liquidations deepen bearish trend

• XRP nears the key $1 support level on Friday after falling over 8% so far this week.
• CoinGlass liquidation shows that 97.11% XRP long positions were wiped out in the last 24 hours.
• Derivatives metrics back bearish sentiment, with XRP’s short bets rising and negative funding rates.

Ripple (XRP) trades near the key psychological support level of $1 at the time of writing on Friday after losing more than 8% so far this week. CoinGlass liquidation data shows that over 97% XRP long positions were wiped out over the past 24 hours. In addition, derivatives metrics continue to favor the bears. The technical outlook suggests that XRP's next directional move depends on whether the key $1 support level holds.

Over 97% XRP longs liquidated 

The broader crypto market remained under pressure so far this week, and Bitcoin (BTC) slipped to a fresh yearly low of $58,115 on Thursday. This move triggered a massive liquidation in the crypto market. 

Meanwhile, XRP followed BTC’s lead and corrected, with the Coinglass liquidations chart below showing $44.42 million liquidations in leveraged positions, of which 97.11.5% were long positions, underscoring XRP’s overly bullish positioning.

Derivatives metrics continue to favor the bears

Derivatives metrics support a negative outlook for XRP. CoinGlass’ long-to-short ratio for XRP read 0.94 on Friday, nearing its lowest level in over a month. The ratio being below one indicates bearish sentiment, as traders are betting that the assets’ prices will fall.

In addition, the funding rate turned negative on Wednesday, reading -0.0042% on Friday, indicating that shorts are paying longs and suggesting bearish sentiment.

Some signs of optimism

SoSoValue data shows some signs of optimism. XRP spot Exchange Traded Funds (ETFs) recorded an inflow of $7.36 million up to Thursday so far this week. Unless Friday’s records a very significant outflow, XRP is about to mark the 8th week of steady inflows since May 8. If this inflow trend continues and intensifies, it could provide a cushion for XRP’s falling price.

XRP technical outlook: Will the $1 support hold?

XRP trades at $1.032 on Friday, down over 8% so far this week. XRP is maintaining a bearish bias as price remains below the 50-day, 100-day, and 200-day Exponential Moving Averages (EMAs) at $1.225, $1.328, and $1.541, respectively. 

XRP also trades below the downward-trending parallel channel at $1.201, reinforcing overhead pressure. Momentum is weak, with the Relative Strength Index (RSI) hovering near 30, flirting with oversold territory. At the same time, the Moving Average Convergence Divergence (MACD) remains slightly negative, with the line below zero and the histogram contracting, suggesting persistent but not accelerating downside.

On the topside, initial resistance is seen near the channel area around $1.201, followed by the 50-day EMA at $1.225. Higher up, a horizontal barrier sits at $1.300, ahead of the 100-day EMA at $1.328, while the 200-day EMA at $1.541 and the distant horizontal level at $1.900 define a broader bearish cap on the medium-term outlook. 

On the downside, immediate support is located at the psychological $1.000 handle; a daily close below this floor would open the way to a deeper slide within the prevailing downtrend.

(The technical analysis of this story was written with the help of an AI tool.)