XRP Slumps Below $1 as Derivatives Traders Maintain Bearish Bias

Ripple's XRP has been under pressure in recent days due to uncertainty across the broader cryptocurrency market and weak technical momentum. The altcoin has slipped below the key $1.00 level, with mixed derivatives and on-chain indicators pointing to cautious sentiment.

Derivatives traders maintain a bearish bias, with CoinGlass data showing that the long-to-short ratio for XRP stands at 0.92, near its lowest levels in a month. A reading below one means short positions outnumber long positions, indicating that more traders are betting on prices falling than rising.

The funding rates also support the current bearish narrative, with XRP's funding rate turning negative on Tuesday and currently reading -0.0021%, after hitting 0.0055% on Monday. A negative funding rate means traders holding short positions are paying those with long exposure, signalling a bearish positioning bias.

However, CryptoQuant's indicators suggest cautious optimism for XRP, but a weaker outlook for Stellar (XLM). XRP's futures market has recorded large whale orders, which could support a recovery if larger investors continue building positions and market conditions improve.