XRP Slides Toward $1.90 as Negative Funding, Rising Shorts and Whale Velocity Raise Downside Risk
XRP has declined toward key support after a week-long slide, trading around $2.13 (down ~1.3%) and roughly 40% below its July peak. Spot volume fell about 27% to $3.4 billion, indicating reduced trader conviction. Funding rates have been persistently negative and short positions now outnumber longs, increasing downside pressure and raising the probability of a retest of the $2.00–$1.90 range. CryptoQuant warns funding below -0.01 could push XRP toward $1.90, while a further funding drop followed by rapid short-covering could produce a quick squeeze up to $2.25–$2.35. On-chain velocity jumped to a 2024 high (0.0324 on Dec 2), signalling heightened whale and high-volume trader activity consistent with distribution or repositioning. Technical indicators remain weak: price is below the 50-, 100- and 200-day moving averages; Bollinger Bands have narrowed with the lower band near ~$1.96; MACD shows a tentative, weak bullish crossover; RSI is neutral around 48. Immediate supports are $2.00 and $1.90, while primary resistance sits at $2.25–$2.35. For traders: monitor funding rates, short interest, on-chain velocity and spot volume for signs of intensified selling or a short squeeze. Expect elevated short-term bearish risk but be prepared for rapid, volatile bounces if funding reverses or short covering accelerates.
Bearish
The combined articles point to elevated short-term bearish risk for XRP. Persistent negative funding rates and rising short interest increase selling pressure and lower the cost for short sellers to hold positions, making a retest of $2.00–$1.90 likely. Reduced spot volume indicates weaker buyer conviction, while price sits below major moving averages and Bollinger Bands have contracted toward a downside target near $1.96. On-chain velocity at 2024 highs suggests active whale/trader distribution or repositioning, which typically accompanies downward moves. That said, rapid funding reversals or concentrated short covering could produce sharp, short-lived bounces into the $2.25–$2.35 resistance band. In summary: expect near-term bearish price action with occasional volatile rebounds driven by short squeezes; longer-term direction will depend on whether funding and short positioning unwind or selling pressure persists.