XRP recovery stalls as sellers regain control

Analysis of XRP Recovery Uncertainty

XRP's recovery is losing ground after sellers broke the $1.44-$1.45 support zone that had been holding since the September breakout. This decline raises the risk of another decline. Previously, the token had been trading in a range-bound environment for over two weeks between $1.44 and $1.56.

Momentum Signals and Accumulation

The former support at $1.44-$1.45 has become immediate resistance, leaving the recovery open to being rejected again by sellers if they are able to retake control. A retest of the $1.34 area would be expected if sellers successfully regain control.

Leveraged Trading and Speculative Exposure

Binance Open Interest (OI) peaked in 2025, reaching over $1.5 billion during the speculative highs. However, it has since decreased by over 68% to roughly $464 million, showing that substantial speculative exposure has disappeared. The decline in OI may result in less volatility due to liquidations and potentially provide a more stable base for the price.

Accumulation and Directional Strength

The accumulation score has now reached 100/100, indicating an overwhelming accumulation condition despite the incomplete recovery. A 45% accumulation volume bias suggests buying interest is present, but this is despite it not producing a decisive breakout. Falling MACD momentum and an Average Directional Index (ADX) reading of 13.5 indicate that directional strength remains weak.

Mixed Outlook

A mixed outlook exists, where sustained accumulation could support a firmer base. However, failure to hold at $1.40 risks renewed selling. Reclaiming $1.41 would strengthen recovery prospects.