The post XRP Faces Technical Pressure as Market Signals Shift Toward Consolidation appeared on BitcoinEthereumNews.com.

XRP remains under bearish pressure as lower highs and clustered averages cap gains. Stabilizing open interest and spot inflows signal easing selling and cautious buying. Ripple’s escrow releases reduce supply shocks, supporting predictable token circulation. XRP faces a critical technical moment as price consolidates on the 4-hour chart amid shifting derivatives and on-chain signals. While short-term bounces offer relief, broader structure still favors caution. Traders now weigh weakening selling pressure against firm resistance overhead, as Ripple’s escrow activity further shapes supply expectations. Technical Structure Keeps Sellers in Control XRP continues to respect a broader bearish trend on the 4H timeframe. Lower highs and lower lows still define market structure. Although price recently bounced, buyers have not reclaimed decisive technical ground. Moreover, price remains capped below clustered moving averages, which continue to attract sellers. XRP Price Dynamics (Source: Trading View) Resistance between $1.93 and $1.95 stands as the first supply zone. Sellers defended this area during recent attempts higher. Consequently, upside momentum faded quickly. A more important barrier sits near $2.02, where a declining long-term average reinforces trend pressure. Bulls must overcome this level to shift sentiment. Above that zone, Fibonacci resistance between $2.09 and $2.18 adds further complexity. This region historically attracts distribution. Hence, any rally into that range likely faces heavy scrutiny. Only a recovery toward $2.28 would suggest a genuine trend reversal. Derivatives and Spot Flows Signal Cooling Risk Source: Coinglass Futures positioning supports a more balanced outlook. Open interest expanded aggressively during late 2024’s breakout, tracking rising volatility. However, peaks in leverage often coincided with local tops. Subsequent contractions reflected liquidations and profit-taking. Into early 2026, open interest stabilized near $3.7 billion.  Related: Bitcoin Price Prediction: BTC Momentum Improves as Derivatives and Flows Stabilize This plateau suggests traders reduced excessive leverage. Additionally, the market now appears healthier,…

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Filed under: News - @ January 5, 2026 6:26 pm