[DigitalToday reporter Yoonseo Lee] XRP rebounded from a short-term low and regained the $1.40 level, but smart money sentiment on Binance and Bybit fell into an extremely bearish zone.

The Crypto Basic, a blockchain outlet, reported on Oct. 10 (local time) that worsening smart money flows at the two exchanges in CoinGlass indicators are heightening caution over whether the rebound will continue.

XRP slid from $1.52 on Oct. 6 to as low as $1.31 on Oct. 8. It later climbed to $1.4075 as buying interest came in. On the 4-hour chart, four consecutive rising candles also confirmed a recovery in buying strength.

Key funds in the derivatives market remain cautious. Smart money sentiment at both Binance and Bybit fell to extremely bearish levels. OKX was the only exception among major derivatives exchanges, with its smart money sentiment holding at a neutral level.

Investor groups showed mixed sentiment by exchange. On Binance, the retail long-to-short ratio was 2.41, classified as bullish, and whale accounts were at 2.82, showing stronger optimism. Binance whale position holders also stayed bullish at 1.82.

On OKX, the retail long-to-short ratio hit 3.06, an extremely bullish reading. Whale accounts, however, were near neutral at 0.92, and whale positions fell to 0.37, classified as extremely bearish. Bybit also showed extremely bullish readings for retail traders and whale accounts, at 3.80 and 3.78, respectively. Bybit whale positions, however, stayed in the neutral range at 0.97.

Futures market flows pointed to a selling advantage. Over the past 24 hours, short taker volume was $1.18 billion, accounting for 52.23 percent of the total. Long taker volume was $1.08 billion, or 47.77 percent. The gap is not large, but short sellers currently have the upper hand. This trend also aligns with bearish signals from smart money indicators on Binance and Bybit.

Technical signals showed both clues for a rebound and caution flags. XRP moved back above the upper boundary of a descending channel formed during the pullback from Oct. 6 to 8. If it holds this area, there could be room for further gains. If buying pressure weakens, it could still slip toward around $1.37. The $1.37 level aligns with the upper boundary of the previous descending channel. If it falls below that price, XRP could move back into the channel.

The Directional Movement Index (DMI) still leans toward selling. The positive directional indicator (+DI) is rising to 15.13, suggesting buying is regaining some initiative. But the negative directional indicator (-DI) remains higher at 31.46. The Average Directional Index (ADX) stood at 41.11, indicating strong trend strength. Still, as -DI and ADX are both declining, downward pressure is read as gradually easing.

The key near-term focus is narrowing to whether $1.37 holds as support. For XRP to extend the rebound, it needs to defend that level, and buyers need to show strength enough for +DI to clearly move above -DI. As long as the smart money bearish signal persists, the current rebound is likely to remain in a confirmation phase.