XRP Drops Over 2 Percent As Bearish Derivatives Limit Recovery

XRP is under downward pressure after sliding more than two percent over the past few days. The popular token trades near $1.392 while approaching an important support zone that traders are watching closely. Market data shows that sell side dominance is currently driving the price action.

Derivatives data reflects a cautious mood among market participants. The long to short ratio for XRP recently dropped to 0.83, showing that short positions now outnumber longs. At the same time, funding rates turned negative, meaning short traders are actively paying long holders. These metrics highlight a distinctly bearish short term positioning across major exchanges.

Despite the pullback, XRP stays above key exponential moving averages, including the 200 day EMA near $1.354. Technical indicators like the Relative Strength Index sit in the mid fifties, while the MACD points to fading upside momentum. Traders should watch the $1.354 support level to see if buyers can defend it, or if the price will slide toward the $1.300 mark next.