- XRP struggles below $2.16 resistance amid rising volatility and market uncertainty.
- RSI nears oversold zone; MACD shows weak momentum and limited buying signals.
- Derivatives surge as short liquidations dominate, signaling cautious trader sentiment.
XRP is approaching a period of heightened volatility after a sudden weekly decline. The token dropped from a recent high of $2.50 to a low of $2.06, marking its first weekly loss since early March, when it registered a 30% drop.
This downturn coincides with a general crypto market correction, as Bitcoin and other major altcoins experienced price pressure. Technical and derivatives data suggest short-term price doubts while XRP/USD trading occurs within a narrow range.
XRP’s recent movement has positioned it below a major resistance point at $2.16. The asset attempted a recovery after peaking at $2.1623 but faced consistent selling pressure that pushed the price down to a session low of $2.04. A minor rebound lifted the price to $2.07, displaying a 4.02% drop over the last 24 hours, based on CoinMarketCap data.
Despite the price decline, XRP’s trading volume recorded an increase. The 24-hour trading activity increased by 20.56%, reaching $3.76 billion. Meanwhile, the token’s market capitalization fell by 3.69% to $120.74 billion, as circulating supply remains at 58.2 billion XRP. XRP maintains the #4 position in the global crypto rankings.
Source: CoinMarketCap
However, market data shows repeated failure to break above the $2.16 resistance level, confirming the presence of bearish momentum.
Indicators Reflect Limited Momentum
Technical indicators on the 4-hour chart hint at a cautious outlook. Current data indicates that the Relative Strength Index (RSI) stands at 30.75 in the proximity of the oversold zone. The signal line currently shows 31.68 position which points to less buying interest. When price falls beneath 30 levels it confirms over-sold market conditions that often trigger brief market reactions.
MACD indicators show signs of weak momentum at the present moment. The MACD line rests above signal line -0.0598 at 0.0002. The near-flat histogram position at -0.0596 indicates market participants remain undecided about a trading direction. The lack of a successful bullish crossover further diminishes near-term bullish sentiment.
Derivatives Volume Surges Amid Short Liquidations
The derivatives market related to XRP has experienced a major surge in activity. Total trading activity increased by 24.30% to reach $8.72 billion, whereas option market activity jumped by 222.23% to $6.93 billion. Options open interest increased 114.18% to reach $990.54K. In contrast, overall open interest dropped by 3.16% to $3.55 billion.
The long/short ratio across platforms stands at 0.9751, indicating balanced sentiment. Exchange-specific data, however, remains bullish. Binance’s XRP/USDT ratio by accounts is at 2.95, and OKX reports 2.34. Binance’s top traders show a ratio of 2.60 by accounts and 1.22 by positions.
FAQs:
Why has XRP’s price dropped recently?
XRP declined from $2.50 to $2.06 due to market-wide correction and strong resistance at $2.16. Continued selling pressure pushed the price further down despite a minor rebound.
What do technical indicators say about XRP’s short-term outlook?
The RSI is near oversold at 30.75, and the MACD shows weak momentum with no bullish crossover. These indicators suggest limited upside potential and market indecision.
What does the derivatives data indicate about XRP sentiment?
Derivatives volume surged, with options trading up over 222%, showing high speculative interest. While the long/short ratio is balanced, platform-specific data points to bullish positioning.
