XRP RETREATS TOWARD KEY SUPPORT LEVEL AMID GROWING SHORT POSITIONS

XRP is edging closer to a critical support level as short interest grows and on-chain activity picks up. At press time, XRP traded at $2.13, down 1.3% over the past 24 hours, extending a week of weakness that has seen the token drop approximately 3.5%. This places XRP about 40% below its July peak of $3.65.

Market activity appears to be slowing, with daily XRP spot volume falling 27% to $3.41 billion. The decline in trading volume indicates that traders are reducing exposure as market momentum softens.

XRP Faces Downward Pressure as Short Interest and Negative Funding Persist

Data shared by CryptoQuant contributor PelinayPA on Dec. 3 shows that funding rates for XRP have remained negative for several days and are trending deeper into negative territory. Short positions continue to outweigh long positions, reinforcing the downward pressure already visible on XRP’s chart.

BITCOIN TO HIT $250K THIS YEAR, SAYS ARTHUR HAYES, MARKS $80.6K AS FLOOR

This environment has limited upward movement, as buyers are hesitant to enter positions with conviction. According to PelinayPA, the current setup increases the likelihood of XRP revisiting the $2 to $1.90 zone. While a sharp short squeeze is not expected immediately, further declines in funding could push XRP briefly toward the $2.25–$2.35 range if short positions are forced to close.

Separately, analysis from CryptoOnChain revealed a sharp rise in XRP velocity on Dec. 2. At 0.0324, the metric hit its highest level of the year, signaling increased on-chain activity and rapid circulation. This indicates that XRP is being used more actively than earlier in 2025, with traders and whales moving coins at a faster pace.

MARKET REBOUNDS: ETHEREUM WHALE PURCHASES GAIN MOMENTUM

FAQs

1. What is XRP’s current price and recent performance?

XRP is trading at $2.13, down 1.3% in the past 24 hours, extending a week of weakness with a total decline of about 3.5%. The token is roughly 40% below its July high of $3.65.

2. How has market activity changed for XRP recently?

Daily XRP spot volume has fallen 27% to $3.41 billion, suggesting that traders are reducing exposure as market momentum slows.

3. What does the CryptoQuant data indicate about XRP funding and short positions?

Funding rates have remained negative for several days, with short positions outweighing long positions. This reinforces downward pressure on XRP and limits upward price movement.

4. What potential price zones are highlighted if current trends continue?

According to PelinayPA, XRP could revisit the $2 to $1.90 zone due to prevailing short pressure. If funding drops further, there’s a chance of a brief move up to $2.25–$2.35 if short positions are forced to close.

5. What does the rise in XRP velocity indicate about on-chain activity?

XRP velocity reached 0.0324 on Dec. 2, its highest level of the year, indicating increased on-chain activity. Traders and whales are moving coins more actively, showing faster circulation compared to earlier in 2025.