XRP came under renewed pressure on Thursday, slipping below the closely watched $1.30 support level and trading around $1.29 as bearish derivatives positioning and persistent selling activity limited the token's recovery prospects.

The weakness followed the Federal Reserve's latest policy decision, in which the central bank held interest rates steady at 3.75%–4.00%. Although rates were left unchanged, continued inflation concerns and a hawkish undertone in the Fed's messaging weighed on investor appetite for risk assets. Cryptocurrencies are commonly grouped with that risk-asset category, and demand for them tends to track shifts in the interest rate outlook.

Derivatives Data Points to Cautious Positioning

Data from CoinGlass shows XRP's long-to-short ratio standing at 0.82, approaching its lowest reading in more than a month. Ratios below one indicate that shorts outweigh longs within the measured dataset, reinforcing the cautious positioning among traders.

Funding rates, however, present a different picture. XRP's funding rate stood at 0.0036%, remaining positive after turning higher on October 16. That means longs were paying shorts, suggesting continued demand for leveraged bullish exposure despite the weaker long-to-short ratio. The divergence leaves XRP's derivatives signals mixed, but the bears remain in firm control at the moment.

CryptoQuant summary indicators show sell-side dominance in both the spot and futures markets for XRP. The platform also flags large whale orders and heating market conditions for the token. Large orders on their own do not establish whether major holders are buying or selling, but the accompanying selling imbalance reinforces the subdued outlook.

Stellar's XLM token, a payments-focused asset frequently viewed alongside XRP, displays a similar pattern, with sellers retaining the advantage across both its spot and futures markets — suggesting that its recent rebound has yet to attract enough demand to sustain a stronger advance.

Technical Outlook

Attention now turns to the technical picture, where the $1.300 level has taken on heightened importance. The XRP/USD daily chart remains firmly bearish, with the token having dropped below the horizontal floor near $1.300. A daily candle close below that level would weaken the recent trading range and increase the risk of a deeper correction. Daily closes are widely used for confirmation because intraday breaks of a level can reverse before the session ends.

The daily Relative Strength Index stands at 40, below the neutral 50 level, indicating that buying momentum remains limited. The Moving Average Convergence Divergence indicator, meanwhile, has improved slightly into positive territory. That offers an early sign of easing bearish momentum, although the price remains below its key moving averages.

XRP's first upside obstacle is the 100-day Exponential Moving Average near $1.333. Above it, the 50-day EMA at $1.357 and the 200-day EMA at $1.372 form additional resistance. Reclaiming that cluster would provide stronger evidence that buyers are regaining control of the market and would improve the token's near-term technical outlook. Further barriers sit at $1.540 and $1.900, although both remain distant from the current price.

For now, XRP's position just above support leaves little room for renewed selling. Holding the $1.300 level and overcoming the nearby moving averages remain the key tests for a more durable recovery.

This article originally appeared on CoinJournal.