XRP Faces Liquidation Pressure as Technical Weakness Deepens Below $2.10

XRP price currently trades around $2.07 with a 3.85% decline over the last 24 hours, yet market activity tells a conflicting story. While trading volume reached $84.60 million, suggesting increased trader interest, the absence of upside follow-through raises serious concerns about buyer commitment. The divergence between activity and directional momentum has become a critical warning sign for Ripple holders.

Liquidation Clusters Point to Accelerating Downside Risk

Liquidation data reveals a precarious setup. Dense liquidation concentrations hover near $1.85, with even heavier clusters between $1.80 and $1.77. Given XRP’s current position, any sustained weakness could trigger a cascade of forced selling. The upper liquidation zones thin considerably beyond $1.95, meaning failed recovery attempts offer limited protection for long positions.

This asymmetric liquidation structure—thin upside liquidity versus concentrated downside zones—creates an environment where price discovery gravitates toward lower levels. Historical patterns suggest that when momentum fades alongside such liquidity arrangements, subsequent moves tend to accelerate lower rather than stabilize. A breakdown through $1.80 could rapidly push liquidity pools deeper, potentially exposing $1.60–$1.50 support zones.

Technical Formation Reveals Distribution Pattern

The daily chart displays a textbook head-and-shoulders pattern that remains intact. The left shoulder peaked near $2.30, followed by a strong move into the head around $3.00. However, momentum deteriorated significantly, with the right shoulder capping near $2.50. This structure confirms buyer exhaustion rather than consolidation strength.

XRP price currently trades below the right-shoulder trendline, a bearish confirmation. The neckline support zone between $1.85 and $1.80 has experienced repeated pressure, with each bounce showing noticeably less conviction. Sellers continue defending descending resistance around $1.95, creating a squeeze that restricts upside attempts. Unless Ripple reclaims and sustains $2.00, the bearish control remains firmly in place.

Leverage Unwind Removes Fuel for Sharp Bounces

Open Interest declined 8.43% to $3.26 billion—a significant contraction during a period of price consolidation near support. Normally, healthy trends see Open Interest expand alongside price momentum. The inverse dynamic playing out here signals trader caution rather than conviction.

Long positions are unwinding as price fails to deliver rebounds, while short traders reduce exposure more cautiously. Yet despite mutual position reduction, selling pressure persists, suggesting that the market structure itself is weighing on buyers. Without fresh leverage entering above $1.90, XRP struggles to absorb selling supply effectively, reinforcing downside vulnerability.

Derivative Positioning Tilts Decisively Bearish

OI-Weighted Funding Rates have turned negative, hovering near -0.0010%, indicating that short traders now pay to maintain positions. This funding imbalance reveals growing conviction among the bearish camp. Long traders, by contrast, are stepping aside rather than defending levels.

Each rally attempt toward $1.90–$1.95 attracts renewed selling, a pattern consistent with negative funding persistence. Shorts have grown increasingly comfortable pressing lower, especially as price approaches $1.85. Buyers hesitate without clear confirmation, causing upward momentum to stall repeatedly. Negative funding across multiple sessions strengthens the downside narrative and suggests stabilization remains unlikely absent a significant catalyst shift.

Converging Weakness Signals Deepening Risk

When structure, leverage, funding, and liquidation metrics align bearishly, the probability of continuation typically exceeds reversal odds. XRP exhibits exactly this alignment. Buyers face resistance and liquidity thinness, while sellers command concentration and cost advantages.

Trading volume has picked up, yet it lacks directional follow-through—a classic sign of distribution. Without a decisive buyer response reclaiming $2.00, the risk of XRP testing $1.00 psychological support remains tangible. A clean loss of $1.80 could accelerate momentum substantially lower, exposing deeper capitulation targets.

The core message remains unchanged: structural weakness persists across all timeframes, and downside continuation appears increasingly probable unless buyers demonstrate immediate conviction above $2.00.