One of the most notable movements in the cryptocurrency market in recent days is the weak performance of XRP. While the news was being published, XRP, which was traded at $ 2.13, continued its one-week downward trend by losing 1.3 percent in value in the last 24 hours. The token, which has fallen approximately 40 percent from its peak of $ 3.65 in July, faces the cautious stance of investors.
Short Positions Increase, Funding Rates Shift to More Negative
Another indicator that the tension in the market has decreased is the sharp decline in transaction volume. XRP’s daily spot trading volume decreased by 27 percent in the last 24 hours, falling to $3.41 billion. This chart indicates that traders are shrinking their positions and market momentum is slowing.
According to data shared by PelinayPA, one of CryptoQuant analysts, on December 3, funding rates have been negative for days and are becoming increasingly negative. This shows that short positions in the market have increased significantly compared to long positions. This chart, which focuses on sellers, further strengthens the downward pressure already seen on the XRP chart.
According to the analyst, the current outlook increases the possibility of XRP retesting the $2 – $1.9 range. On the other hand, if the funding rates shift further to negative, short positions are forced to be closed, which may cause the price to move towards the 2.25 – 2.35 dollar band, albeit for a short time.
In parallel, a different analysis published by CryptoOnChain showed a sharp increase in XRP’s on-chain velocity on December 2, marking the highest level of the year. This metric rising to 0.0324 means that XRP is changing hands much faster in the market and large investors are making more intense coin movements.
Technical Outlook: Downward Structure Not Broken
On the daily chart, XRP is stuck inside a clear downward channel. The overall momentum is still considered negative as the price is trending below the 50, 100, and 200-day moving averages. Although it is close to the 20-day average price level, it has not yet signaled an upward turn.
Volatility is also quite low. Bollinger Bands have narrowed and XRP’s weak attack on the upper band seems to have failed. If the selling pressure continues, the possibility of the price easing to $1.96 is on the table.
Momentum indicators give mixed signals. While the MACD has created a bullish signal, albeit weak, the RSI remains in the neutral zone at 48. While the main support points stand out as $ 2 and 1.9, the first strong upward resistances are followed at $ 2.25 and $ 2.35.
Meanwhile, a similar slowdown is noticeable in the crypto market, not only in XRP but also in the general altcoin segment. Recently Ethereum 
$2,804.64The decline in transaction fees and the decline in on-chain activities revealed that risk appetite has weakened throughout the market. According to experts, this contraction in capital flow can increase short-term pressure even on strong projects such as XRP.
