According to Coinglass, open interest in XRP has soared above $4 billion, indicating increased liquidity and market activity as more traders open positions using leverage.
High leverage can amplify price movements, setting the stage for a potential short squeeze in XRP.
Based on the materialization of an inverted V-shaped pattern on the daily chart of XRP, the fourth largest cryptocurrency by market capitalization is not yet out of the woods.
This is based on the fact that this pattern indicates a sharp shift in market sentiment from optimism and buying enthusiasm to fear and selling pressure.
If this downward momentum is not tamed, XRP could slide to the $1.70 support zone, as this would fully confirm the inverted V-shaped pattern.
Market analyst Bit Bull holds a similar view that XRP needs to hold the $2.15 level to avoid a sharp drop to $1.55.
She noted: "XRP is right on the edge of a key support zone. After months of sideways movement, the structure looks ready for a major breakout or drop. If the bulls hold this level, the potential for growth towards the $7.00 zone is still on the table. If not, the focus shifts to $1.55 for the next major demand."
As XRP continues to go through a phase of tight consolidation, anything is possible because volatility can increase both upwards and downwards, and $1.70 is a level to watch if the latter occurs, due to the volatility expected at this level.
Therefore, one should not underestimate caution.
XRP and altcoins are experiencing the longest cryptocurrency downturn in history, but hints of a rebound remain.
The altcoin market is undergoing the longest bearish phase in history, surpassing the decline of 2018-2019. This prolonged downturn has led to major digital assets like XRP struggling to regain momentum despite periodic rallies.
XRP, currently trading around $2.22, has experienced significant volatility in recent months.
After peaking at $2.73 in late 2024, it has dropped by more than 20%, and technical indicators signal a bearish trend.
In particular, the number of active addresses on the XRP Ledger has decreased by 53% over the past month, indicating a decline in user engagement and liquidity.
Despite these challenges, there are optimistic forecasts for the future of XRP. CoinLore analysts expect XRP to reach $4.27 by the end of 2025, nearly double the current levels.
Similarly, CoinMarketCap forecasts an average price of $3.08 for XRP in 2025 with possible peaks up to $4.59 depending on favorable events such as legal victories for Ripple and wider adoption of its payment solutions.
A significant event affecting XRP's prospects is the announcement by the U.S. government in March 2025 of a Strategic Crypto Reserve, which includes XRP among other major cryptocurrencies. This move aims to strengthen the digital asset sector and may boost confidence in XRP and its adoption.
Additionally, the Ripple stablecoin RLUSD continues to gain traction after securing listings on Zero Has and Revolut earlier this year, confirming its authority in the fintech ecosystem.
The RLUSD stablecoin recently received support after the Dubai Financial Services Authority recognized it as a cryptocurrency token suitable for use in the Dubai International Financial Centre.
$XRP , $XLM , $IOTA
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I don’t know about you, my dear readers, but I read the news with great interest!
based on materials from the portal: By Coinpaper.com
