XRP has been consolidating below critical resistance at $2.73 for over a month. This prolonged stagnation has frustrated investors, leaving traders uncertain about the altcoin’s next move.
Traders Lose Confidence in XRP
XRP Futures Open Interest (OI) dropped by $1 billion in the last 24 hours. Just a day earlier, OI had climbed to $2.9 billion, fueled by hopes of a breakout. However, when XRP failed to gain momentum, traders began pulling back their funds.
This shift indicates growing bearish sentiment among investors. The decline in OI suggests skepticism over XRP’s ability to overcome its resistance, which could slow market activity further.
Bearish Indicators Emerge
XRP’s macro momentum also appears weak. The Price DAA Divergence, a key market indicator, is flashing a sell signal. This reflects reduced participation and stagnant price action. As a result, traders might start locking in profits, adding more downward pressure on the altcoin.
If selling pressure grows, XRP could struggle even more to escape its consolidation phase. Limited participation and cautious investors could stall any potential recovery until stronger market trends develop.
XRP Price Prediction: Breaking Out or Breaking Down?
Over the past month, XRP’s price has dropped 20%, yet it holds above the $2.00 support level. Despite this, the altcoin remains stuck under the $2.73 resistance, unable to initiate a rally.
- Bearish Scenario: If the current trend persists, XRP risks losing its $2.00 support. This would further erode investor confidence and extend its consolidation phase.
- Bullish Scenario: If market sentiment shifts positively, XRP could break above $2.73. A successful breakout might drive the price toward its all-time high of $3.31, invalidating the bearish outlook and sparking renewed interest.
