Ripple’s XRP consolidated near $1.42 as bearish price action clashed with a recent surge in social optimism. The cryptocurrency, down from a December peak of $2.40, saw sellers defend key resistance levels, triggering liquidations and pushing the price to a low near $1.15. While derivatives data shows persistent selling pressure, on-chain utility milestones and rising sentiment are providing a defensive floor for the asset.
XRP faces a fragile consolidation as sustained selling pressure unravels its post-December structure from distribution to forced liquidation. Sellers have controlled the market from the $2.40 peak, accelerating downsides by breaking through supports at $1.73 and then $1.50 to trigger stop-losses.
A rebound from the $1.15 level tapped the 100% Fibonacci retracement near $1.1479, drawing in opportunistic buyers. However, bulls have failed to reclaim the $1.50–$1.60 zone as overhead supply reloaded and conviction remained thin.
Technical indicators reflect this persistent trend pressure, with the MACD staying negative and the RSI near 42 showing muted demand. This structure heightens choppy, range-bound trading risk, discouraging aggressive long positions.
Derivatives data signals underlying pressure, with Funding Rates on Binance plunging to -0.035%, indicating crowded shorts. The Long/Short Ratio shows a nearly even split at 49.1% longs to 50.9% shorts, while Open Interest has collapsed to $2.35 billion from 2025 highs, reflecting exhausted speculative demand.
Rising social optimism surrounds XRP as bullish sentiment climbed to a five-week high, according to Santiment data. This sentiment expansion stems from partnership growth and utility narratives, which have amplified social dominance and retail discourse.
Utility developments are contributing, highlighted by Flare’s milestone of 100 million FXRP, which unlocks structured DeFi yields. This utility redirects liquid supply into staking and bridge channels, tightening circulation and signaling institutional experimentation.
