[Digital Today reporter Yoonseo Lee] An analysis says selling pressure in the XRP derivatives market is easing and the market structure is shifting to a neutral phase.

The Crypto Basic, a blockchain media outlet, reported on July 20 local time that CryptoQuant analyst Phelline said XRP has lost a clear direction, citing Binance liquidation indicators and funding rates.

The key basis is that the scale of long and short liquidations has not diverged sharply. Binance data showed long liquidations of about 103,000 XRP and short liquidations of about 122,000 XRP. Phelline said the small gap means neither side has suffered markedly larger losses. If strong downward pressure had persisted, long-position liquidations should have been much larger, and if buying had been strong, short liquidations should have surged due to a short squeeze, he said.

Funding rates staying near zero is another basis for a neutral view. That suggests traders are not placing strong bets on either the long or short side.

Similar liquidation volumes also show balance in leveraged positions. It means liquidations are occurring on both long and short sides rather than only one side collapsing whenever prices briefly swing. Phelline said this points to limited conviction about direction among market participants and an environment with frequent short-term reversals.

A low chance of a large squeeze was also presented as a fourth signal. With funding rates staying near zero, excessive optimism or strong pessimism has not built up in the market, and the liquidation data suggests investors have not yet decided XRP's next direction.

Spot price action is positive. XRP is trading in the $1.10 range and remains near the lower end of a key short-term support zone.

Technical resistance levels are also tightly stacked above. The 50-day simple moving average is $1.12, the 100-day is $1.25 and the 200-day is $1.42. All of these levels were presented as resistance lines XRP must clear before a full-fledged rebound.

On the downside, buying in the $1.00 to $1.06 range has recently absorbed some selling pressure. But if the daily close drops below $1.00, the possibility of an additional decline to $0.80 could open up, and the $0.90 to $0.93 range is also cited as a key support level. If XRP breaks below that range, current expectations for a rebound could weaken further.

On the upside, regaining $1.13 was presented as the first task. That level has shifted from a previous support line to a resistance line. After that, the next hurdle narrows to the $1.15 to $1.20 range, where the 50-day exponential moving average overlaps with major Fibonacci resistance.

The analysis highlights that weakness in spot prices and neutral signals in the derivatives market are appearing at the same time. It said future price direction may react more sensitively to whether support holds and resistance is reclaimed, as investor sentiment is not tilted to one side.