Open Interest Drops $1B as Price Struggles to Break Resistance
XRP has been consolidating below key resistance levels for over a month. This has frustrated investors as altcoins have struggled to gain momentum. This prolonged period of inactivity took a toll on trader confidence, with many holding back as the altcoin failed to show significant price growth.
XRP Open Interest Drops $1B
Recently, XRP futures open interest fall A $1 billion jump in the past 24 hours. Just a day earlier, open interest exceeded rebound expectations, surging to $2.9 billion. However, as expectations of an imminent rally faded, traders began to withdraw funds.
This sudden withdrawal reflects the growing bearish sentiment among XRP enthusiasts. Furthermore, the decline in open interest indicates that XRP’s ability to break out of current resistance levels is becoming increasingly uncertain. In addition to these concerns, XRP’s macro momentum is also showing signs of weakness.
Will XRP remain stagnant?
Price DAA divergence is currently sending a sell signal, indicating declining participation and stagnant price action. This bearish indicator suggests that traders may start to take profits, which could lead to further price declines. Reduced investor participation could hinder altcoin recovery, sending it into a consolidation phase until stronger market signals emerge.
Although the price of XRP fell by 20% in the past month, it still managed to stay above the $2.00 support. However, it remains below the key resistance at $2.73. If bearish factors persist, XRP may continue to fall and may lose support at $2.00. This could exacerbate the situation by further eroding investor confidence and increasing selling pressure.
Analysts are bullish on XRP
Conversely, if the broader market situation is bullish, XRP may break the $2.73 resistance and target an all-time high of $3.31. Analysts are bullish on the future of XRP, and recently analyst Dark Defender said on X that XRP is currently in a correction phase, similar to the 4-hour time frame, and is expected to complete within ±10 days on the daily chart. He noted that a bull flag pattern appeared on the weekly chart in early December with a target of $8.67.
However, analysts noted that XRP would have to complete its correction before reaching this target. He pointed to support levels at $2.03, $2.11, $2.13, and $2.17, and resistance levels at $2.22, $2.42, and $2.69. Analysts believe that XRP is expected to continue targeting soon after completing the correction.
Cryptocurrency analyst Egrag said Predictive May 5th could be a key date for XRP, expressing a bullish outlook, with XRP targeting $15 by May 5, 2025.
