For over a month, XRP has been consolidating below a critical resistance level, leaving investors frustrated as the altcoin struggles to generate upward momentum. This extended period of inactivity has adversely impacted traders’ confidence, leading many to retreat as the cryptocurrency fails to exhibit significant price growth.
XRP Open Interest Experiences Sharp Decline
Recently, XRP Futures experienced a significant drop in Open Interest, plummeting by $1 billion in just 24 hours. This decline came after the Open Interest soared to $2.9 billion amid expectations of a potential rally. However, as hopes of an imminent rally dissipated, traders began to withdraw their funds. This sudden withdrawal reflects the increasing bearish sentiment among XRP enthusiasts. The decline in Open Interest further underscores the growing uncertainty surrounding XRP’s ability to overcome its current resistance levels. Compounding these concerns is the weakened macro momentum of XRP, which is exhibiting signs of frailty.
Will XRP Remain in a Stagnant Phase?
The Price DAA Divergence indicator is currently signaling a sell, indicating waning participation and stagnant price movements. This bearish signal suggests that traders might start securing profits, potentially leading to further price declines. The reduced investor participation could hinder the altcoin’s recovery, keeping it mired in a consolidation phase until stronger market signals emerge. Although XRP’s price has decreased by 20% over the past month, it has managed to hold above the $2.00 support level. However, it remains below the crucial resistance level of $2.73. If bearish factors persist, XRP could continue its decline, risking the loss of its $2.00 support level. This scenario could further dampen investor confidence and increase selling pressure, exacerbating the situation.
Analysts’ Optimistic Outlook on XRP
Contrarily, if broader market conditions turn bullish, XRP could break through the $2.73 resistance and aim for its all-time high of $3.31. Analysts remain optimistic about XRP’s future prospects. Recently, analyst Dark Defender shared insights on social media platform X, indicating that XRP is currently undergoing a correction phase similar to a 4-hour time frame. This phase is expected to complete within approximately 10 days on the daily chart. Dark Defender identified a bull flag pattern on the weekly chart in early December, with a target of $8.67. However, the analyst emphasized that before reaching this target, XRP must complete its correction phase. The support levels are identified as $2.03, $2.11, $2.13, and $2.17, while resistance levels are marked at $2.22, $2.42, and $2.69. The analyst believes that XRP is poised to achieve these targets soon after completing the correction.
Future Projections: A Bullish Forecast
Crypto analyst Egrag has projected that May 5th could be a pivotal date for XRP, expressing a bullish outlook with an ambitious target of $15 for XRP by May 5th, 2025. While these projections are optimistic, they highlight the potential for significant growth in XRP’s value, contingent upon favorable market conditions and successful navigation through its current challenges.
