Ripple's XRP has slid by 2.23% over the last 24 hours, reflecting a 4.24% drop for the week and an alarming 6.83% fall throughout the month. This ongoing decline traces back to August 2025, when XRP reached a swing high of $3.66, not an all-time high, before beginning its downward trajectory.

Reports indicate that Open Interest is on a downward trend, which highlights a hesitance among derivatives traders to place directional bets on XRP. Additionally, the observed decline in exchange reserves suggests accumulation without a guarantee of imminent price recovery. Whale-to-exchange flows remain low, indicating that large investors may not be eager to sell, yet the overall price movement stays bearish.

Analysts hint that prolonged negative funding rates might actually present a medium-term buying opportunity. A recent examination of the price action revealed a bearish structure continuing from June, as XRP fell under the previous February swing low of $1.11, reinforcing a negative trend.

Technical indicators support this bearish outlook. The On-Balance Volume (OBV) has been stagnant in recent weeks, coinciding with XRP's price fluctuations between $1.0 and $1.2. The Awesome Oscillator remains below the zero line with minimal momentum, casting doubt on any probable recovery.

While a bounce to the 78.6% Fibonacci retracement level at $1.529 is theoretically plausible, current market sentiment is grim. The lack of demand suggests a greater likelihood of XRP dropping below the $1 mark rather than approaching $1.5. A persistent falling wedge pattern requires a decisive breakout above resistance to signify a reliable reversal.

Notably, the respected technical analyst Chart Nerd highlighted on X that XRP's pullback from the cycle's peak still hasn’t reached the average of previous cycles, which hovered around 87%. If this trend persists, XRP could plummet to $0.44.

Traders and investors are advised to monitor support levels at $1.0, $0.85, and $0.60 closely. The dwindling Open Interest points to a decrease in speculative activities surrounding XRP, and for any real recovery potential, accumulation must be supported by robust spot buying.

This material is informational and should not be considered as financial advice.