XRP Stalls at $1: Derivatives Market vs Exchange Flows

XRP is testing its $1 support level after a decline of nearly 70% from its peak in January 2025. The token's price has been falling, but it's happening on declining volume, which could be a sign that selling interest is exhausting itself or that buyers have simply stepped away.

The derivatives market shows aggressive short positioning, with open interest rising while the spot price falls. This divergence typically means new short positions are being opened rather than existing long positions being closed, and it points to a potential violent move higher if the price reverses.

However, exchange flow data tells a different story. Monthly net inflows to centralized exchanges have fallen to a record low of approximately 3.6 million XRP, while withdrawals hit their highest level since February 2021. This could be a bullish signal as holders move tokens off exchanges and into long-term storage.