XRP Price Analysis: Potential Crash on the Horizon?

XRP (XRP) has seen a modest recovery, climbing nearly 7% over the past ten days, attributed to a broader cryptocurrency market rebound and the conclusion of Ripple’s lengthy legal dispute with the U.S. Securities and Exchange Commission (SEC). Despite this positive movement, on-chain data indicates a concerning lack of substantial buying activity, putting multiple key support levels at risk.

XRP Futures Markets Lean Bearish

XRP is currently trading approximately 30% below its multi-year high of $3.40. In a similar market scenario back in November 2024, high spot market bids drove the price beyond the $3 mark. Unfortunately, the spot and perpetual markets for XRP have remained lackluster in recent weeks.

Key takeaways include:

• The cumulative open interest (OI) in perpetual futures has been consistently below $4 billion since early March, notably less than the $7.86 billion peak reached in mid-January before XRP’s significant price surge.

• Funding rates for XRP have mostly been negative over the last fortnight, indicating a bearish sentiment among traders as those holding short positions have been paying fees.

• Moreover, XRP’s spot cumulative volume delta (CVD) has indicated a negative trend over the past two weeks, suggesting that selling pressure has outpaced buying pressure, which could signal further bearish prospects.

• Overall, these indicators raise questions about XRP’s potential to increase in value in the near term.

XRP Whale Activity Remains Muted

Recent data from Santiment indicates negligible whale activity in XRP, with no significant buying or selling over the past week. This has led to stability in XRP’s price as movements from large holders typically cause substantial market fluctuations.

• Wallets holding between 1 million and 10 million XRP have maintained their total holdings at approximately 5.8 billion tokens since mid-March.

• The absence of whale trading suggests a market characterized by smaller investors without major price-driving activity.

• However, this quietness might reflect a market-wide uncertainty, potentially keeping XRP in a phase of consolidation.

• Without drastic whale-driven movements, XRP’s price may continue to oscillate within a specified range unless new catalysts arise.

Key XRP Price Levels Below $2.40

The recent uptick in XRP’s price allowed it to recapture crucial support levels, including the significant psychological mark of $2.40. Traders are now closely observing levels below this threshold, which XRP may revisit if the present support collapses.

Noteworthy points include:

• The first point of interest lies between the March 18 low of $2.22 and the previous low of $1.90 from March 11.

• Should support at $2.40 give way, XRP may aim for the liquidity zone within this range.

• A rapid recovery from this range would signal potential buying interest beneath $2.40.

• Conversely, some analyses suggest that XRP could retrace towards the February 3 low around $1.76 if the downward trend persists.

• Notably, the 200-day SMA lies just below this range, indicating a potential demand zone above $1.75.

As noted by crypto analyst Gemxbt, “XRP is currently consolidating with support around $2.35 and resistance at $2.50.” He emphasizes observing breakouts of these levels for clearer market direction.

“I suggest watching for a break of these levels for a clearer direction.”

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.