XRP holds $1.30 as falling futures interest signals weak demand

Key takeaways

• The failed CLARITY Act vote and the Federal Reserve’s rate increase have weighed on sentiment.
• XRP futures open interest fell from 2.25 billion to 2.12 billion tokens, signaling softer speculative demand.
• The 50-day and 100-day EMAs provide support between $1.28 and $1.26.

Ripple’s XRP remained under bearish pressure on Friday, trading just above $1.30 as buyers attempted to defend a cluster of short-term moving-average supports.

The token has struggled since rising to $1.50 on Monday. Sentiment weakened after the U.S. Senate failed to advance the CLARITY Act and the Federal Reserve raised its benchmark interest rate by 25 basis points to a range of 3.75% to 4.00%.

Higher interest rates can reduce liquidity and weaken demand for risk assets, including cryptocurrencies. However, the Fed’s decision was widely anticipated, limiting the immediate market reaction.

Ripple highlights XRP’s existing legal clarity

Despite the legislative setback, Ripple maintains that XRP already has a meaningful legal advantage following the company’s lengthy court battle with the Securities and Exchange Commission.

Ripple said the litigation established that XRP is not inherently a security, giving the company and token firmer legal footing even without a comprehensive U.S. digital-asset framework.

The company acknowledged that the CLARITY Act could have offered greater certainty across the broader crypto industry. Still, it argued that XRP remains on “settled ground” compared with many other digital assets.

Derivatives activity has weakened alongside XRP’s fading price recovery. Futures open interest fell to 2.12 billion XRP on Friday from 2.25 billion the day earlier. It has also retreated considerably from the 2.78 billion XRP recorded on August 15.

Falling open interest indicates traders are closing leveraged positions or becoming less willing to establish new ones. If the decline continues, XRP may struggle to attract the speculative demand needed for a sustained move back toward $1.50.

The token nevertheless displayed some resilience following the Fed’s expected rate increase. 

XYO co-founder Markus Levin noted that the central bank’s improved growth outlook suggests policymakers do not believe the U.S. economy is approaching a severe downturn.

However, the effects of higher borrowing costs could emerge gradually as financial conditions tighten.

XRP bulls defend the $1.26-$1.28 support zone

XRP remains above the 50-day and 100-day exponential moving averages, which provide support around $1.28 and $1.26, respectively.

The 200-day EMA at approximately $1.36 represents the first major resistance. A decisive break above that level could improve momentum and reopen the path toward $1.50.

Technical indicators currently point to consolidation with a bearish tilt. The Moving Average Convergence Divergence indicator has fallen further below zero, while its expanding negative histogram suggests bullish momentum is weakening.

Meanwhile, the Relative Strength Index stands at 49, slightly below its neutral midpoint.

A daily close below the $1.26-$1.28 support cluster would strengthen the bearish outlook and potentially trigger a deeper correction. 

Conversely, holding this zone and reclaiming $1.36 would provide an early sign that buyers are regaining control.