XRP has been consolidating below key resistance for over a month. This has frustrated investors as the altcoin struggles to gain momentum. This prolonged inactivity has damaged traders’ confidence, with many retreating as the altcoin failed to show significant price growth.
XRP Open Interest Drops by $1 Billion
Recently, open interest in XRP futures dropped by $1 billion in the last 24 hours. Just a day before, Open Interest had jumped to $2.9 billion, beating expectations for a rally. However, as expectations of an imminent rally dissipated, traders began to withdraw their funds.
This sudden pullback reflects the growing bearish sentiment among XRP enthusiasts. Furthermore, the decline in open interest illustrates the growing uncertainty over whether XRP will be able to break through its current resistance levels. Added to these concerns is the macroeconomic momentum of XRP, which is showing signs of weakness.
Will XRP remain stagnant?
The DAA price divergence is currently issuing a sell signal, indicating declining participation and stagnant price movements. This bearish indicator suggests that traders could start taking profits, which could cause prices to fall further. Reduced investor participation could hamper the altcoin’s recovery, keeping it stuck in a consolidation phase until stronger market signals emerge.
Although XRP price fell 20% over the past month, it managed to hold above the $2.00 support level. However, it still remains below the crucial resistance level of $2.73. XRP could continue to decline and risk losing its $2.00 support level if bearish factors continue to exist. This could further weaken investor confidence and increase selling pressure, making the situation worse.
Analysts are bullish on XRP
On the contrary, if overall market conditions look bullish, XRP could break through the resistance at $2.73 and aim for its all-time high of $3.31. Analysts are optimistic about the future of XRP as recently analyst Dark Defender told a delay of ± 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. It cites the support levels as $2.03, $2.11, $2.13 and $2.17, while the resistance levels are $2.22, $2.42 and 2.69. $. The analyst believes that XRP is likely to maintain its targets very soon after the correction ends.
Crypto analyst Egrag predicted that May 5 could be a crucial date for XRP, expressing a bullish outlook with a target of $15 for XRP by May 5, 2025.
