XRP’s recent performance has left investors increasingly frustrated, as the cryptocurrency remains confined below a key resistance level for more than a month. This prolonged period of consolidation has dampened trader enthusiasm, leading to waning market participation and a growing number of withdrawals.
In the last 24 hours, XRP Futures experienced a dramatic $1 billion drop in Open Interest, which had previously surged to $2.9 billion on hopes of an impending rally. This sharp decline highlights the rising bearish sentiment and the growing skepticism about XRP’s ability to break past its resistance at $2.73.
Investor concerns are further compounded by weakening macro momentum for XRP. Indicators such as the Price DAA Divergence have signaled a potential bearish trend, characterized by a reduction in investor activity and a stagnation in price action. This trend suggests that profit-taking could intensify, potentially pushing XRP below its critical $2.00 support level.
Despite the overall pessimism, there are still voices of optimism within the market. Analyst Dark Defender has identified a bull flag pattern on XRP’s weekly chart, suggesting that a price target of $8.67 is possible once the current correction phase is over. He highlighted key support levels ranging from $2.03 to $2.17 and resistance up to $2.69.
Other analysts, such as Egrag, remain bullish about XRP’s future. Egrag has predicted that XRP could reach $15 by May 2025, while veteran trader Peter Brandt believes that the altcoin is poised for a 100x rally. Brandt has pointed to a bullish wedge pattern emerging on XRP’s weekly chart as further evidence of its potential upside.
At this juncture, XRP’s price trajectory hinges largely on broader market sentiment and the overall trends within the cryptocurrency space. Should a bullish shift occur, XRP may find the momentum needed to break through its $2.73 resistance and set its sights on its all-time high of $3.31. Until that happens, however, the cryptocurrency faces significant pressure to maintain its crucial $2.00 support level.
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