The cryptocurrency market has performed positively over the past few days, but the rally seems to have stalled.

Bitcoin is trading around the $87k region, while Ether has failed to overcome the $3k psychological level.

Ripple’s XRP is also stagnant around the $2.18 resistance level but could rally higher in the near term if the bullish trend resumes. 

XRP is down by less than 1% in the last 24 hours and is currently trading around $2.17 per coin.

The performance means that the recent rally has stalled, with the bulls failing to push XRP above the $2.3 resistance level.

The negative performance comes as the derivatives market shows that the bullish conviction is fading.

XRP’s futures Open Interest (OI) has declined to $3.96 billion, down by more than 3% over the past 24 hours as speculative participants scaled back exposure.

In addition to that, trading volume has also declined 14%, showing reduced appetite for aggressive bullish trades.

Finally, options activity shows a 64% decline in volume, suggesting that traders are currently unwilling to commit to higher-volatility strategies or hedges.

Data obtained from CoinGlass also revealed that the long-short ratios across major cryptocurrency exchanges remain neutral.

Binance and OKX top-trader data reveal balanced positioning, suggesting that neither the bulls nor the bears are prepared to make a decisive move in the market. 

While XRP’s bounce above $2 created a brief pause in downside momentum, the absence of strong leverage inflows into the market suggests that traders are not yet prepared for a trend reversal. 

However, analysts believe that the market is gaining strength. In an email to Invezz, Coinbase UK CEO Keith Grose stated that,

“Market conditions are shifting as institutions across Europe take a more structured and regulated approach to digital assets. We’re seeing clearer frameworks emerge, stronger infrastructure being developed, and early examples of central banks and financial institutions running controlled pilots to build practical understanding – including the Czech National Bank’s recent decision to test a small, ring-fenced portfolio of digital assets.”

The XRP/USD 4-hour chart is bearish and inefficient as XRP has failed to rally towards the efficiency level at $2.7 over the past few days.

XRP tested and found support around the $1.85 level during the weekend and has added 15% to its value since then.

At press time, XRP is trading at $2.17 per coin.

If XRP continues its recovery, it could rally toward the next daily resistance level at $2.35, which is close to its 50-day EMA at $2.37.

The 4-hour RSI of 56 is above the neutral level, indicating a growing bullish narrative.

Furthermore, the MACD lines are also within the positive territory as buyers have been in control this week. 

On the other hand, if XRP fails to surpass the $2.35 resistance, it could extend the decline toward the Friday low of $1.82 over the next few days.

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