XRP has been experiencing a prolonged period of consolidation beneath a critical resistance level, causing understandable frustration among investors. This altcoin is currently grappling with a lack of upward momentum, which has further exacerbated traders’ concerns. The persistent stagnation has led many traders to retreat, as XRP has struggled to exhibit any significant price growth.
XRP Open Interest Experiences Significant Decline
In a recent development, XRP Futures Open Interest witnessed a substantial drop of $1 billion within just 24 hours. This comes after a temporary surge to $2.9 billion, fueled by anticipation of an impending rally. However, when the rally failed to materialize, traders began withdrawing their funds, signaling a shift towards a bearish sentiment among XRP investors.
The declining Open Interest is a reflection of the growing uncertainty surrounding XRP’s capability to break through its current resistance barriers. The macro momentum for XRP also seems to be waning, further adding to the concerns of investors and traders alike.
Will XRP Continue Its Stagnation?
The current market indicators, such as the Price DAA Divergence, are flashing sell signals, indicating reduced participation and stagnant price action. This bearish outlook suggests that traders might start securing profits, potentially leading to further price declines. The dwindling investor participation could impede the altcoin’s recovery, keeping it in a consolidation phase until more robust market signals surface.
Despite a 20% decline in XRP’s price over the past month, it has managed to remain above the crucial $2.00 support level. However, it is still struggling to surpass the significant resistance level at $2.73. If the current bearish conditions persist, XRP could risk falling below the $2.00 support, further eroding investor confidence and intensifying selling pressure.
Analysts Offer a Bullish Perspective on XRP
Contrary to the prevailing bearish sentiment, some analysts maintain a bullish outlook for XRP. Should the broader market conditions turn favorable, XRP could potentially break through the $2.73 resistance and target its all-time high of $3.31. Analyst Dark Defender recently shared insights on X, suggesting that XRP is currently undergoing a correction phase, expected to conclude within approximately ten days, according to the daily chart.
The analyst identified a bull flag pattern on the weekly chart, with a target of $8.67. However, he emphasizes that XRP must complete its correction phase before reaching this target. Key support levels are noted at $2.03, $2.11, $2.13, and $2.17, while resistance levels stand at $2.22, $2.42, and $2.69. The analyst is optimistic that XRP will continue its upward trajectory soon after the correction phase concludes.
Additionally, crypto analyst Egrag has predicted that May 5th could be a pivotal date for XRP, expressing a bullish forecast with a target of $15 by May 5th, 2025. This optimism is contingent on favorable market conditions and XRP’s ability to navigate its current challenges successfully.
