XRP Derivatives Data Leaning Towards a Downtrend
Key figures regarding XRP reflect a concerning downtrend. According to CoinGlass data, the open interest (OI) dropped by 36% in a month. It decreased from $5.53 billion on May 14 to just $3.54 billion on June 23. This significant decrease suggests that investors are disengaging, potentially anticipating a price drop.
At the same time, XRP funding rates turned negative to -0.0068% on June 23, from 0.0057% the day before. This indicates an increase in bearish bets on the cryptocurrency’s price. Historically, such signals have often preceded downtrends in price movements.
Technical analysis of the XRP price highlights a descending triangle pattern on the daily chart since the end of 2024. This pattern is characterized by a horizontal support line and a downtrending resistance. It is generally considered a bearish indicator following a strong uptrend.
In the current scenario, bulls struggle to keep XRP above the support line at $2.00, indicating a lack of momentum. A break below this level would likely trigger a price drop to the target price of the pattern, around $1.18, representing a 41% decline from current levels.
Key Areas to Monitor
The XRP/USDT liquidation map on Binance reveals significant liquidity zones where compression events may occur. Therefore, a high concentration of liquidations is visible around $1.75, suggesting that this level is a significant support.
If the $1.75 level were to break, it could trigger a wave of liquidations, pushing prices towards $1.60, the next major liquidity zone identified.
XRP faces worrisome bearish signals with imbalanced technical and market indicators. The decrease in open interest, negative funding rates, and the descending triangle pattern all suggest a high risk of a further price collapse, potentially up to 41% according to analyses.
Ultimately, investors must exercise caution and conduct their own research before making any decisions. Indeed, the situation remains volatile and subject to rapid changes in the cryptocurrency market.
