XRP has been facing a challenging phase, consistently consolidating below a significant resistance level for more than a month. This prolonged stagnation has left investors feeling frustrated, as the altcoin finds it difficult to gain upward momentum. The lack of substantial price growth has eroded traders’ confidence, prompting many to reconsider their positions as they wait for notable market movements.
XRP Open Interest Experiences a Significant Drop
Recently, XRP Futures witnessed a substantial decline in Open Interest, plummeting by $1 billion within just 24 hours. This sharp decrease followed a surge to $2.9 billion, driven by optimistic expectations of a potential rally. However, as hopes for an imminent upward movement dwindled, traders began to withdraw their funds. This rapid withdrawal underscores the increasing bearish sentiment among XRP enthusiasts and highlights the mounting uncertainty about XRP’s ability to break through its current resistance levels. Additionally, XRP’s macro momentum is also showing signs of weakness, compounding these concerns further.
Will XRP Remain Stagnant?
The Price DAA Divergence indicator is currently signaling a bearish trend, suggesting declining participation and stagnant price movements. This indicator implies that traders might start securing profits, potentially leading to further price declines. The reduced participation from investors could hinder XRP’s recovery, keeping it in a consolidation phase until stronger market signals emerge. Over the past month, XRP’s price has decreased by 20%, yet it has managed to stay above the $2.00 support level. However, it remains below the critical resistance level of $2.73. If bearish factors persist, XRP could face a risk of falling below the $2.00 support level, further weakening investor confidence and increasing selling pressure, thereby exacerbating the situation.
Analysts Maintain a Bullish Outlook on XRP
Contrary to the current bearish sentiment, some analysts maintain a positive outlook on XRP. If broader market conditions turn bullish, XRP might successfully breach the $2.73 resistance and aim for its all-time high of $3.31. Analysts remain optimistic about XRP’s future, with analyst Dark Defender sharing insights on X about XRP’s correction phase. He likens it to a 4-hour time frame correction expected to complete within approximately 10 days on the daily chart. A bull flag pattern identified on the weekly chart in early December suggests a target of $8.67. However, the analyst emphasizes that before reaching this target, XRP must complete its correction phase. He identifies support levels at $2.03, $2.11, $2.13, and $2.17, with resistance levels at $2.22, $2.42, and $2.69. The analyst predicts that XRP is poised to achieve targets shortly after completing the correction.
Additionally, crypto analyst Egrag has forecasted that May 5th could be a pivotal date for XRP, expressing a bullish outlook with a target of $15 for XRP by May 5th, 2025. This optimistic forecast reflects the potential for significant price movements, contingent upon favorable market conditions and successful navigation through current challenges.
