XRP Price Faces Volatility Risk at $1.32 as Whale Activity Sharply Drops

TLDR:

XRP Open Interest has risen sharply, indicating increasing leveraged positioning across futures markets.
Whale deals above $1 million fell 57%, reflecting weaker large-scale market participation.
XRP technical indicators continue to show fading momentum below major resistance levels.
Elevated N/A ratio indicates that XRP rallies may remain volatile and structurally unstable.

XRP price enters a critical phase as futures positioning rises while whale participation weakens across the market.

Recent on-chain and technical signals now point to growing volatility pressure. Will the asset stabilize or enter another sharp directional movement?

XRP price momentum weakens despite rising open interest

XRP price continues to show mixed signals as derivative activity increases across futures markets. Open interest has recently risenindicating aggressive positioning by traders who expect higher volatility in the near term.

Normally, rising open interest along with stable price action reinforces bullish momentum conditions. However, the current structure looks less convincing as broader market participation remains uneven across several key metrics.

A recent market analysis shared by PelinayPA said that XRP may be preparing for a potential squeeze scenario. The report noted that leveraged traders are increasingly active, although underlying network activity remains relatively weak.

The biggest concern comes from the increased NVT ratio, which continues to push irregular spikes. This metric indicates that XRP’s valuation is expanding faster than actual transaction growth across the network.

When N/A remains overheated during bullish price activity, rallies often become unstable and vulnerable to rapid reversals. This creates an environment where sharp upward movements can quickly turn into aggressive corrections.

Meanwhile, XRP market cap has remained relatively stable during the recent slowdown. That stability suggests that large investors are not aggressively exiting positions, despite waning momentum conditions.

The broader four-hour XRP/USDT chart also reflects a gradual shift from expansion to consolidation. After rising to the $1.50 to $1.55 region in mid-May, price action gradually weakened as buyers lost momentum.

Every pullback since the breakout phase has produced lower highs as sellers continue to defend resistance zones. XRP is now trading near the $1.32 level with bearish pressure intensifying around near-term support.

Whale Activity Decline Signals Compression Phase Over XRP Market

Technical indicators continue to strengthen the market’s weakening structure. The MACD remains below the zero line while the signal crossover continues to favor bearish momentum conditions.

At the same time, the RSI dropped to the 35 region without showing a convincing recovery signal. In stronger bullish trends, RSI retracements usually stabilize much higher before momentum resumes.

Current support remains positioned between $1.30 and $1.32. If XRP decisively loses that area, traders can start targeting a move towards the $1.25 region.

On the upside, bulls need to reclaim the $1.38 to $1.40 resistance zone before momentum conditions improve substantially. Until then, price action continues to reflect hesitation rather than strong continuation demand.

Another important development comes from whale transaction data shared by cryptoanalyst Ali Martinez. Transactions above $1 million reportedly dropped from 157 to just 67 in nine days.

This sharp decline represents a 57.3% drop in whale participation across the XRP market. Large containers often drive volatility and liquidity expansion during large directional movements.

The decline in whale activity now suggests that XRP is entering a compression phase after its overheated rally. Lower volatility, weaker capital flows and narrowing ranges increasingly support that transition narrative.

Compression phases are not always bearish because markets often stabilize before larger moves develop. However, if liquidity continues to fade along with weaker price action, upside risks may increase further across the short-term structure.