XRP has been consolidating under key resistance for over a month. This has left investors frustrated as the altcoin struggles to gain upward momentum. This extended inactivity has taken a toll on traders’ confidence, with many stepping back as the altcoin has failed to display significant price growth.
XRP Open Interest Drops By $1B
Recently, the Open Interest in XRP Futures dropped by a massive $1 billion in the past 24 hours. Just a day before, the Open Interest had surged to $2.9 billion over expectations of a rally. However, as the expectations of an imminent rally faded away, traders began withdrawing their funds.
This sudden withdrawal reflects the growing bearish sentiment among the XRP enthusiasts. Also, the declining Open Interest depicts the growing uncertainty over XRP’s ability to break through its current resistance levels. Adding to these concerns, is XRP’s macro momentum as well which is showing signs of weakness.
XRP To Remain Stagnant?
The Price DAA Divergence is currently flashing a sell signal, indicating declining participation and stagnant price movements. This bearish indicator suggests that traders may begin to secure profits, which could lead to further drawdown in the price. The reduced participation from the investors could hold obstruct the altcoin’s recovery, keeping it stuck in a consolidation phase until stronger market signals emerge.
While XRP’s price has dropped by 20% over the past month, but it has managed to hold above the $2.00 support level. However, it still remains under the crucial resistance level of $2.73. XRP could continue declining and could risk losing its $2.00 support level if the bearish factors continue to exist. This could further weaken investor confidence and add to the selling pressure aggravting the situation.
Analysts Bullish On XRP
On the contrary, if the broader market conditions appear bullish, XRP could breach the $2.73 resistance and aim for its all-time high of $3.31. Analysts are bullish on XRP’s future as recently, analyst Dark Defender took to X to share that XRP is currently in a correction phase, similar to a 4-hour time frame, which is expected to complete within ±10 days on the daily chart. He noted that a bull flag pattern was identified on the weekly chart in early December, with a target of $8.67.
However, the analyst notes that before reaching this target, XRP must complete its correction. He quotes the support levels to be $2.03, $2.11, $2.13, and $2.17, while resistance levels are $2.22, $2.42, and $2.69. The analyst believes that XRP is expected to continue targets very soon after completing the correction.
Crypto analyst Egrag has forecasted that May 5th could be a crucial date for XRP, expressing a bullish outlook with a target of $15 for XRP by May 5th, 2025.
