XRP Sells Off Near $1.00 Amid Broader Crypto Bearish Sentiment

Ripple (XRP) is continuing to lose momentum as bears tighten their grip on the cryptocurrency market. The drop towards $1.00 aligns with the lethargic sentiment in the broader crypto market, and a daily close below this critical demand area could deepen the sell-off, narrowing XRP's recovery potential.

The US-listed XRP spot Exchange-Traded Funds (ETFs) are continuing to underperform, with muted trading activity persisting through Friday and Monday. The ongoing lack of institutional participation underscores prevailing bearish sentiment across the crypto sector, diminishing prospects for a sustained recovery.

Activity in the derivatives market is regaining traction, however, as reflected in the perpetual futures Open Interest (OI), rising to 2.74 billion XRP on Tuesday, from 2.62 billion XRP the previous day. If sustained, this could anchor a sustained trend reversal above the key $1.00 level.

From a technical analysis perspective, XRP trades at $1.01, maintaining a bearish near-term bias as price holds decisively below the 50-day, 100-day and 200-day Moving Average Exponential (EMA) lines.