According to a report shared by CryptoQuant, XRP is entering a technically fragile phase as multiple high-timeframe signals converge on the bearish side.
Both price structure and derivatives data suggest weakening conviction, with momentum fading and capital steadily exiting the market.
Weekly Chart Shows Clear Bearish Divergence
The weekly XRP/USD chart highlights a classic bearish divergence between price action and the Relative Strength Index (RSI). While XRP attempted to maintain elevated price levels following its sharp advance, the RSI has been forming progressively lower highs. This divergence signals declining buying strength despite price stability, often preceding broader corrective moves.
At the same time, price is compressing toward the $1.80 zone, marked as a critical support and former resistance area. The chart shows repeated tests of this level, indicating it has become a major technical battleground. Continued failure to reclaim higher levels while hovering near this zone increases downside risk, especially if momentum continues to deteriorate.
RSI Trend Confirms Loss of Bullish Momentum
The RSI structure reinforces the bearish case. After peaking during the strong upside impulse, the indicator entered a clear downtrend, with lower highs forming across successive attempts to recover. This behavior reflects exhaustion rather than consolidation, suggesting buyers are no longer able to generate sustained follow-through.
As long as RSI remains below its prior peaks, upside attempts are likely to face increasing resistance, leaving price vulnerable to sharper reactions if support weakens.
Open Interest Collapse Signals Capital Exit
Derivatives data adds further confirmation to the bearish outlook. XRP Open Interest on Binance has fallen sharply to approximately $450 million, reaching its lowest level since November 2024. The chart shows a steep and sustained decline, pointing to widespread position closures rather than temporary volatility.
This drop in Open Interest reflects significant capital outflows and the unwinding of leveraged exposure, particularly on the long side. Such behavior typically signals reduced trader confidence and diminished appetite for upside continuation, aligning closely with the weakness observed in spot price momentum.
Confluence Builds a High-Risk Setup
The combination of weekly bearish RSI divergence, repeated pressure on the $1.80 level, and a historic contraction in Open Interest creates a structurally bearish environment for XRP. Price is no longer supported by strong momentum or speculative participation, increasing sensitivity to downside moves.
According to the CryptoQuant report, unless XRP can stabilize momentum and attract renewed participation, the current setup leaves the market exposed to deeper corrective pressure if support fails.
