XRP (CRYPTO: XRP) has dropped 10% over the past seven days, but a potential bullish recovery setup may be forming
Trader Cryptoinsightuk noted on Thursday that aggregated open interest dropped 4.6% in token terms and 8.6% in dollar terms, suggesting leveraged positions are being closed.
The decline is significant compared to the relatively smaller price movement.
Other notable factors for traders to decide next move:
- Rising spot trading volume indicates buyers could be stepping in despite the broader selloff.
- Funding rates have also fluctuated between positive and negative, with the latest reading turning negative. This suggests traders are increasingly positioned for further downside.
- The 4-hour bullish RSI divergence remains critical, where XRP makes a lower low while the RSI forms a higher low, signaling weakening selling momentum.
Cryptoinsightuk expects a potential entry near the lower end of XRP’s trading range, although a brief liquidity sweep below support remains possible.
XRP’s Institutional And Tokenization Strength
Despite XRP’s price weakness, institutional investment products continue to attract capital.
Spot XRP ETFs recorded $8.17 million in net inflows on Oct. 8, bucking daily outflows from Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) ETFs, according to SoSoValue data.
Meanwhile, Token Relations reported on Oct. 8 that the XRP Ledger recorded the strongest real-world asset (RWA) market capitalization growth among blockchains like Ethereum (CRYPTO: ETH), Solana (CRYPTO: SOL) during the first nine months of 2026.
XRPL’s RWA market capitalization surged more than 60-fold from $40.8 million on Jan. 1 to $2.46 billion by Sep. 30, making it the sixth-largest blockchain by RWA market capitalization.
However, Token Relations cautioned that XRPL’s tokenized asset market remains heavily concentrated in a handful of assets.
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