XRP sinks under $1.30 support on bearish derivatives data

Critical highlights:

• XRP fell under $1.30 on Thursday, continuing its bearish trajectory.
• The long-to-short ratio is currently 0.82, reflecting a bearish stance among traders.
• For its short-term technical picture to brighten, XRP needs to recapture the resistance zone between $1.333 and $1.372.

XRP faces headwinds after Fed's cautious rate hold

On Thursday, XRP stayed under pressure as bearish derivatives bets and ongoing selling curbed hopes of a rebound.

XRP was changing hands near $1.29, slipping under the key $1.300 support. The decline came after the Federal Reserve left interest rates unchanged at 3.75%–4.00%.

Even with rates steady, ongoing inflation worries and a hawkish tone dampened demand for riskier investments.

According to CoinGlass, the long-to-short ratio for XRP stood at 0.82, nearing its lowest level in over a month.

A ratio under 1 means short positions outnumber longs in the data, confirming the cautious positioning around both tokens.

Funding rates, though, offer a contrasting view. XRP's funding rate was 0.0036%, staying positive since it rose on October 16.

This implies that long positions are compensating shorts, indicating ongoing appetite for leveraged bullish bets despite the weaker long-to-short ratio.

The mixed derivatives signals for XRP still leave bears in charge for now.

CryptoQuant's aggregate indicators show selling pressure dominating both spot and futures markets for XRP.

For XRP, the platform also flags large whale orders and heating market conditions. Large orders by themselves do not indicate buying or selling intent from major holders, but the accompanying sell-side imbalance supports the weak outlook.

For XLM, spot and futures markets also show sellers holding the upper hand, implying that its recent recovery has not drawn sufficient demand to fuel a sustained rally.

XRP may suffer further losses after falling under $1.300 support

The daily XRP/USD chart stays bearish after the price slipped below the horizontal support around $1.300.

If the daily candle closes under that level, it would undermine the recent range and raise the chance of a more significant decline.

The daily RSI is at 40, under the neutral 50 mark, showing weak buying momentum.

The MACD indicator has edged slightly into positive territory, which suggests early signs of bearish momentum fading. However, the price is still below its main moving averages.

The first resistance to the upside is the 100-day EMA around $1.333. Further above, the 50-day EMA at $1.357 and the 200-day EMA at $1.372 provide additional barriers.

Recapturing that cluster would be stronger proof that buyers are taking back control. Higher obstacles lie at $1.540 and $1.900, but both are far from the present price.

Currently, XRP sits just above support with little buffer for fresh selling. The critical tests for a lasting recovery are holding $1.300 and breaking through the nearby moving averages.