XRP Tests $1.05 Support Amid Large Derivatives Exposure

The cryptocurrency XRP faces critical technical tests this week, hovering near $1.05 with heightened risk of a steep decline as a massive derivatives position looms over a thin spot market. The token, which traded around $1.08 on July 30, is down roughly 70% from its all-time high set in mid-2025, and analysts warn that broader market weakness and unresolved regulatory uncertainty are weighing heavily on its prospects.

Technical indicators paint a bearish picture. XRP is trading approximately 21% below its 200-day moving average, with its price compressed into a tight range. Key momentum indicators like the Relative Strength Index (RSI) show readings in the low 40s, signaling bearish territory without reaching extreme oversold levels. However, a monthly RSI reading has fallen below levels seen during the market crash of March 2020, a historic comparison that some analysts argue could signal a potential bottom. The token's chart structure has deteriorated, with a breakdown below a key rising trendline that now acts as resistance near $1.11, coinciding with the 50-day moving average.

A central concern is the token's $2.43 billion open interest in derivatives markets against...