XRP remained under selling pressure on Tuesday, trading below $1.25 as the cryptocurrency struggled to recover from its recent decline. Buyers have so far been unable to push the price back above the $1.30 level, and the latest readings suggest sellers continue to set the tone in both spot and derivatives markets.

Data from CoinGlass and CryptoQuant paint a mixed picture. While funding rates suggest some traders are still betting on a recovery, derivatives positioning and on-chain activity indicate that sellers remain influential across spot and futures markets. Technical indicators are likewise showing little evidence of a sustained reversal, leaving the cryptocurrency vulnerable to further losses.

Derivatives data show divided sentiment

Derivatives traders appear increasingly cautious about XRP's near-term prospects, although not every indicator points in the same direction.

According to CoinGlass data, XRP's long-to-short ratio stood at 0.84 on Tuesday. The long-to-short ratio is one of the most closely watched gauges of directional positioning among derivatives traders, and a reading below 1 indicates that short positions outnumber long positions in the measured market. The figure points to a bearish tilt in positioning and limited confidence in an immediate price recovery.

Funding rates, however, tell a somewhat different story. XRP's funding rate turned positive on October 30 and has remained above zero since, standing at 0.0073% as of Tuesday. Positive funding means traders holding long positions are paying those holding short positions, reflecting a willingness among some market participants to maintain bullish exposure.

The contrast between the two readings suggests traders remain divided over the direction of XRP's next major price move. While short positioning points to caution, positive funding indicates that some leveraged traders are still anticipating a rebound.

On-chain activity points to persistent selling

Beyond the derivatives market, on-chain and trading activity data also suggest that XRP and Stellar are facing persistent selling pressure.

According to CryptoQuant's market summary, XRP's spot and futures markets are showing sell-side dominance alongside unusually large whale orders. Large orders from major market participants can influence short-term price movements, particularly when liquidity is relatively thin. These conditions add an extra layer of uncertainty to XRP's short-term outlook.

CryptoQuant also identifies heating conditions in XRP's spot market, suggesting heightened trading activity during a period of weak sentiment. Taken together, the indicators point to a cautious market environment in which sellers continue to hold the advantage.

Bears maintain control below $1.30

XRP was changing hands around $1.2487 on Tuesday, and its daily chart shows the token trading firmly under bearish pressure, with little evidence so far of a sustained reversal.

The token is trading below all of its major exponential moving averages (EMAs): the 50-day EMA at $1.336, the 100-day EMA at $1.324, and the 200-day EMA at $1.365. Trading beneath all three suggests the broader trend remains weak, with potential recovery attempts likely to encounter resistance.

XRP is also struggling beneath a descending trendline near $1.285 and the psychological resistance level at $1.30, the first major obstacles buyers must clear to improve the short-term outlook.

Momentum indicators offer bulls little encouragement. The Relative Strength Index (RSI) is hovering around 37, indicating weak buying momentum. The indicator has not yet entered oversold territory, however, meaning additional downside remains possible before selling pressure becomes technically stretched. Meanwhile, the Moving Average Convergence Divergence (MACD) remains slightly negative, reinforcing the prevailing bearish sentiment.

On the upside, XRP must first reclaim the descending trendline resistance around $1.285. A sustained move above that level could open the door to a retest of $1.30, which has emerged as an important short-term resistance zone.

If buyers manage to break above $1.30, attention could shift to the 100-day EMA at $1.324 and the 50-day EMA at $1.336, with the 200-day EMA at $1.365 representing another significant hurdle. A decisive move above this cluster of moving averages would strengthen the case for a broader recovery toward $1.54 and potentially $1.90.

On the downside, immediate support lies at $1.16. A breakdown below that level could accelerate selling pressure and expose the psychological $1.00 mark, where buyers may attempt to defend the price. The $1.16 area has therefore become a key level to watch in the near term.

For now, XRP's technical structure remains bearish, and the inability to reclaim $1.30 keeps sellers in control of the short-term trajectory.