XRP faces critical levels: will the downtrend resume or reverse?
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XRP has shown resilience after bouncing from its recent low of $1.89 on March 11, but its recovery remains fragile as key indicators suggest underlying weakness. Despite trading higher at $2.20, bearish sentiment prevails, and the asset remains below a crucial resistance zone between $2.35 and $2.42.
Funding rates in the perpetual futures market are negative, signaling that short sellers are paying long traders, an indication that the majority of market participants expect lower prices. Additionally, open interest (OI) in XRP futures has declined significantly from $5.67 billion in January to $2.4 billion, suggesting that capital is leaving the market. Historically, assets with falling OI struggle to sustain rallies, and XRP’s declining interest makes it vulnerable to further downside pressure.
Technically, XRP has formed an inverted V-shaped pattern, often associated with trend exhaustion. The 50-SMA at $2.28 and support at $2.20 are now critical levels to watch. If sellers break below this range, XRP could decline toward $2.01, with an extended move potentially retesting the March low of $1.89. A close below this level would confirm a bearish continuation, opening the door to further declines.
On the flip side, a sustained hold above $2.20–$2.28 could increase XRP’s chances of breaking $2.35–$2.42, where the 100-SMA and 200-SMA converge. A break above this resistance would invalidate the bearish outlook and pave the way for a push toward $2.47 and, in an extended scenario, $3.39.
While Dark Defender, a widely followed crypto analyst, maintains an optimistic long-term outlook, suggesting XRP has “started Wave 1” toward $5.85, the short-term outlook remains uncertain. The next few days will be critical, as failing to hold the $2.20 support could trigger cascading liquidations, while a breakout above $2.42 would restore bullish momentum.
Funding rates in the perpetual futures market are negative, signaling that short sellers are paying long traders, an indication that the majority of market participants expect lower prices. Additionally, open interest (OI) in XRP futures has declined significantly from $5.67 billion in January to $2.4 billion, suggesting that capital is leaving the market. Historically, assets with falling OI struggle to sustain rallies, and XRP’s declining interest makes it vulnerable to further downside pressure.
Technically, XRP has formed an inverted V-shaped pattern, often associated with trend exhaustion. The 50-SMA at $2.28 and support at $2.20 are now critical levels to watch. If sellers break below this range, XRP could decline toward $2.01, with an extended move potentially retesting the March low of $1.89. A close below this level would confirm a bearish continuation, opening the door to further declines.
On the flip side, a sustained hold above $2.20–$2.28 could increase XRP’s chances of breaking $2.35–$2.42, where the 100-SMA and 200-SMA converge. A break above this resistance would invalidate the bearish outlook and pave the way for a push toward $2.47 and, in an extended scenario, $3.39.
While Dark Defender, a widely followed crypto analyst, maintains an optimistic long-term outlook, suggesting XRP has “started Wave 1” toward $5.85, the short-term outlook remains uncertain. The next few days will be critical, as failing to hold the $2.20 support could trigger cascading liquidations, while a breakout above $2.42 would restore bullish momentum.