XRP extended a three-day losing streak Thursday, slipping to around $1.422 as negative funding rates and rising Treasury yields weighed on sentiment. Reports of U.S. preparations for possible strikes on Iran added further uncertainty, though XRP held above its key daily moving averages.
XRP traded around $1.422 Thursday, extending its correction after three consecutive losing sessions. The move brought its weekly decline to more than 6%.
Weaker derivatives signals and difficult macroeconomic conditions limited buying interest.
Derivatives data show a bearish tilt
CoinGlass data put XRP's long-to-short ratio at 0.88 Thursday, pointing to a slight tilt toward short positioning. Funding rates told a similar story: after flipping below zero Wednesday, the rate stood at -0.0022% on Thursday.
Negative funding means shorts pay longs and can signal stronger demand for bearish perpetual positions. However, neither funding rates nor positioning ratios guarantee the direction of the next price move.
Yields and dollar strength add pressure
The U.S. Dollar Index stabilized around 102.24 Thursday after reaching an intraday high of 102.53 Monday, its strongest level since early April 2025. The U.S. 10-year Treasury yield held near 5.30% after touching roughly 5.35% Monday, described as a fresh two-decade high.
Higher yields increase the appeal of interest-bearing investments and can make conditions less supportive for speculative assets such as XRP. Minutes from the September 15–16 Federal Open Market Committee meeting showed unanimous support for raising the federal funds rate target range, with most officials expecting another increase before year-end to address persistent inflation.
Iran strike reports deepen caution
Reports also cited preparations for potential renewed U.S. military operations against Iran. The Pentagon reportedly instructed U.S. Central Command to complete preparations while President Donald Trump considered the timing of possible strikes.
These reports describe potential action rather than a confirmed attack. Still, uncertainty around an escalation could encourage defensive positioning and reduce appetite for cryptocurrencies.
Price outlook: $1.400 support faces a test
Despite the weekly decline, XRP remained above its key daily exponential moving averages. The 50-day EMA near $1.400 provides immediate support, closely followed by the 200-day EMA at $1.389, with the 100-day EMA below at $1.336.
Momentum remained weak, with the RSI hovering near 45 while the MACD sat below zero. A sustained break beneath the moving-average cluster would bring $1.336 and horizontal support at $1.300 into focus, with $1.000 cited as a more distant downside reference. On the upside, resistance sits at $1.671, and a sustained break above that level would bring $1.900 into view.
Source: CoinJournal
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