XRP price has been facing increasing selling pressure, with market sentiment turning noticeably bearish in recent weeks. The shift in sentiment comes as XRP continues to struggle around the $1 mark, keeping traders cautious about what could come next. However, not all market signals are pointing in the same direction. While the broader mood around XRP has weakened, some underlying data is showing an interesting shift in market activity.
This raises an important question: is XRP simply heading toward another leg lower, or could the current pessimism be setting the stage for a potential reversal? Let’s take a closer look at the latest sentiment, on-chain activity and price action to understand what the data could mean for XRP’s next move.
XRP Sentiment Turns Bearish as On-Chain Activity Surges
The latest Santiment data highlights a noticeable shift in XRP market sentiment. Negative commentary around the token has climbed to a three-month high, suggesting that traders and market participants are becoming increasingly cautious as XRP struggles to regain its footing. However, the sentiment picture becomes more interesting when we look at XRP’s network activity.
The number of active addresses has also surged, reaching nearly 49,929 in 24 hours, marking a multi-month high. This indicates that despite the growing negativity surrounding XRP, activity on the network remains elevated. The combination of rising negative sentiment and increasing active addresses presents a mixed picture. The next question is whether the price action and derivatives market are showing signs of a potential shift or whether sellers still have the upper hand.
XRP Price Analysis: Bears Remain in Control
XRP’s price action continues to reflect a bearish structure, with the token struggling to hold key support levels amid persistent selling pressure. It is trading around $1, holding the psychological level after slipping from $1.023. A sustained recovery above could help improve the market structure, while continued rejection below it would suggest that sellers are still firmly in control.
Open Interest stands at around $996 million, indicating that a significant amount of capital remains tied up in XRP futures positions. The funding rate is currently positive at around 0.0030, meaning long positions are paying short positions. This suggests that, despite the bearish price action, there is still some willingness among traders to maintain bullish exposure.
However, the Futures CVD paints a more concerning picture. The indicator is deeply negative at around -5.685 billion and has continued to trend lower, pointing to persistent aggressive selling in the futures market. This supports the weakness seen in XRP’s price action and suggests that sellers have remained active, rather than the decline occurring due to weak participation.
Overall, the combination of weak price action, rising open interest, and declining Futures CVD keeps XRP’s near-term bias bearish. For the trend to show signs of improvement, XRP would first need to reclaim key levels and show evidence that aggressive selling is beginning to ease.
Is a Reversal Brewing? Here’s What’s Next for XRP
The XRP price remains bearish, but the combination of extreme negative sentiment and elevated network activity makes the setup worth watching. For a reversal to gain strength, XRP needs to reclaim $1.023 and hold above it. A higher low and improving CVD would further support the bullish case.
If momentum strengthens, XRP could then target the $1.17–$1.18 resistance zone. However, continued rejection below $1.023, along with further CVD declines, would keep the bearish scenario intact. For now, a reversal is possible but not confirmed. The $1.023 level remains the key trigger to watch for XRP’s next major move.