XRP Faces 2.06% Pullback Amid Speculations and Declining Exchange Reserves

Bitcoin and Ethereum are stabilizing, while XRP is at a critical level, trading around $2.50 with a recent 2.06% pullback in 24 hours and a nearly 22% drop over the past week, reducing its market cap to $140 billion.

XRP Market Sentiment

• Open interest stands at $3.65 billion, with more selling positions than buying.
• The long-to-short ratio is at 0.9708, indicating bearish sentiment among traders.
• The funding rate has improved from -0.0077% to 0.0004%, suggesting growing optimism.

Exchange Reserves Impact

• XRP exchange reserves have declined from 3.04 billion to 2.76 billion since January 16.
• This decrease signals potential accumulation and reduced selling pressure.
• A continued decline in reserves may lead to price rebounds due to supply reduction.

XRP Price Analysis

• XRP currently trades at $2.44, recovering 2.70% intraday after dropping to $2.38.
• Support is noted at $2.27; bullish continuation remains plausible.
• Potential challenge for $2.83; falling below $2.2781 may test the $2 psychological mark.