XRP Price Slides Below $1.30 Support Amid Increased Sell Pressure

XRP's recent price slide has left traders bearish in the short-term. On Tuesday, September 15th, Ripple (XRP) plummeted by 9.82% to $1.28, falling from its previous high of $1.42. This decline was unexpected, as XRP had been testing the $1.45 resistance zone since late August.

The price slide coincided with a significant decrease in Open Interest (OI), which fell by 23% or $257 million in just under a month. This indicates that derivatives positions were either closed or liquidated in large numbers, suggesting a decline in speculative interest. The OI decline also coincided with XRP's rejection from the $1.50 supply zone.

The reasons behind XRP's dip are multifaceted. Despite positive spot ETF flows and growing institutional demand, the price action lagged due to the decline in Bitcoin (BTC) prices. This led to a decrease in investor confidence, resulting in increased sell pressure and a drop below the $1.30 support level.

The exchange supply ratio has also been stable since April, but if it continues to fall, it could be seen as a sign of accumulation and coin flow into cold storage. However, a further price decline with an increase in the supply ratio would shake off the bullish bias of XRP.