XRP stabilizes after 60% drop as THIS fuels volatility risk

Ripples [XRP] recent price behavior unfolds within a prolonged drawdown phase, where sentiment has gradually turned decisively bearish.

Over time, price declined nearly 60% from its peak, while drawdowns repeatedly pushed beyond -50%, reinforcing a consistent risk-off tone.

Source: CryptoQuant

As this pressure built, positioning began to reflect that outlook, with Funding Rates staying persistently negative across recent months. This signals that traders continue to favor short exposure rather than hedging temporarily.

Source: CryptoQuant

However, as this bias strengthens, price action begins to shift, with XRP stabilizing around the $1.3–$1.5 range instead of extending lower.

This divergence suggests selling momentum is slowing, which raises the probability of volatility expansion as crowded shorts build imbalance.

XRP positioning shifts from deleveraging to re-entry

XRPs positioning now shifts from simple deleveraging into a more layered re-entry phase, where traders rebuild exposure after the drawdown.

Initially, the roughly 60% decline flushed excess leverage, which reduced forced selling and helped stabilize price action.

As pressure eased, the price recovered about 3% toward $1.47, which began attracting fresh positioning rather than strong-conviction buying.

This explains why Open Interest (OI) climbed to $2.83 billion, up 5.95%, as new trades entered while older shorts remained profitable.

Meanwhile, liquidations showed $5.01 million in short losses versus $1.57 million in longs, which signals growing pressure on late bearish positioning.

This dynamic creates a stacked structure, where earlier shorts hold an advantage while newer entries face risk. As a result, the market builds internal tension, with volatility likely to expand as positioning unwinds rather than extending a clear directional trend.

XRP builds a base under $1.49 resistance

XRPs price action now reflects a transition from a sustained downtrend into early stabilization, with indicators starting to support that shift.

Earlier, price consistently traded below the Bollinger mid-band, while the upper band acted as dynamic resistance, reinforcing bearish momentum.

As the breakdown pushed the price toward $1.20, the bands expanded sharply, signaling volatility and capitulation.

Source: XRP/USDT on TradingView

However, as the price moved into consolidation, the bands began to contract, which indicates compression and reduced volatility. At the same time, price is now attempting to reclaim the mid-band near $1.45–$1.47, showing early strength.

Meanwhile, CMF has turned slightly positive, around 0.06, suggesting that capital inflows are returning.

This combination signals weakening selling pressure, while a confirmed move above the upper band could trigger momentum expansion.

All in all, XRP sits at a pivot, where a resistance break fuels a squeeze, while failure keeps bearish pressure and range-bound or downward continuation intact.