XRP is facing a challenging time, with ominous technical indicators like declining open interest, negative funding rates, and a descending triangle pattern, raising the spectre of a potential crash. A detailed analysis sheds light on the current situation.
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.
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.
Gaston has been a writer for over 7 years and a passionate cryptocurrency enthusiast since 2020. He loves exploring the crypto ecosystem and is now dedicated to sharing his insights and discoveries through InvestX.
DISCLAIMER
This article is for informational purposes only and should not be considered as investment advice. Trading cryptocurrencies involves risks, and it is important not to invest more than you can afford to lose.
InvestX is not responsible for the quality of the products or services presented on this page and cannot be held liable, directly or indirectly, for any damage or loss caused by the use of any product or service featured in this article. Investments in crypto assets are inherently risky; readers should conduct their own research before taking any action and invest only within their financial means. This article does not constitute investment advice.
Risk Warning : Trading financial instruments and/or cryptocurrencies carries a high level of risk, including the possibility of losing all or part of your investment. It may not be suitable for all investors. Cryptocurrency prices are highly volatile and can be influenced by external factors such as financial, regulatory, or political events. Margin trading increases financial risks.
CFDs (Contracts for Difference) are complex instruments with a high risk of rapid capital loss due to leverage. Between 74% and 89% of retail investor accounts lose money when trading CFDs. You should assess whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Before engaging in financial or cryptocurrency trading, you must be fully informed about the associated risks and fees, carefully evaluate your investment objectives, level of experience, and risk tolerance, and seek professional advice if needed. InvestX.fr and the InvestX application may provide general market commentary, which does not constitute investment advice and should not be interpreted as such. Please consult an independent financial advisor for any investment-related questions. InvestX.fr disclaims any liability for errors, misinvestments, inaccuracies, or omissions and does not guarantee the accuracy or completeness of the information, texts, graphics, links, or other materials provided.
Some of the partners featured on this site may not be regulated in your country. It is your responsibility to verify the compliance of these services with local regulations before using them.
