XRP Tests $1 Support Amid Mixed Signals from Derivatives and Exchange Flows

XRP's price has been steadily declining over the past two weeks, reaching $1.02 on August 11, down from $1.07 a week earlier and $1.15 two weeks before that.

This decline has been orderly rather than panicked, suggesting that selling pressure is coming from spot holders reducing positions rather than leveraged longs being forced out.

The derivatives market shows aggressive short positioning, with futures open interest rising 8% over the past two weeks to $2.72 billion, even as the spot price has declined by the same percentage.

This divergence is a reliable signal in derivatives analysis, pointing to new short positions being opened rather than existing long positions being closed.

In contrast, exchange flow data shows 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.