XRP has spent over a month consolidating under a critical resistance level, leaving investors frustrated by its lack of upward momentum. This prolonged stagnation has shaken trader confidence, with many pulling back as the altcoin struggles to display significant price growth.
Open Interest Drops by $1 Billion
In the past 24 hours, XRP Futures Open Interest plummeted by $1 billion, a sharp reversal from the $2.9 billion surge just a day prior. The spike in Open Interest had fueled expectations of a rally, but as optimism waned, traders began withdrawing their funds. This sudden exodus reflects growing bearish sentiment and uncertainty about XRP’s ability to overcome its resistance levels.
Adding to these concerns, XRP’s macro momentum shows signs of weakness, further dampening confidence in its short-term recovery.
Stagnation and Bearish Signals
The Price DAA Divergence is currently flashing a sell signal, indicating waning investor participation and stagnant price action. This bearish trend could lead to profit-taking and a deeper price drawdown. Despite a 20% decline over the past month, XRP has held above the $2.00 support level. However, it remains capped under the $2.73 resistance.
If bearish factors persist, XRP risks losing its $2.00 support, potentially exacerbating selling pressure and further weakening investor sentiment.
Also Read: XRP Price Analysis: $8.67 Target in Sight Amid Crucial Correction Phase
Analysts Remain Optimistic
Despite current challenges, some analysts remain bullish on XRP’s long-term potential. Renowned analyst Dark Defender predicts that XRP is in a correction phase, expected to conclude within ±10 days. He identifies a bull flag pattern on the weekly chart, targeting $8.67 once the correction phase is complete.
Additionally, analyst Egrag has set an ambitious target of $15 for XRP by May 5, 2025, signaling optimism for a future breakout. Key support levels include $2.03, $2.11, and $2.17, while resistance levels range between $2.22 and $2.69.
Outlook for XRP
While XRP’s short-term outlook appears uncertain, its potential for a bullish breakout remains intact. Holding above critical support and breaking through resistance will be crucial for reclaiming investor confidence and targeting new highs.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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