XRP is facing significant bearish threats. As long as the $2.74 support holds, a positive outcome is viable. However, a potential drop to $2.40 becomes plausible if this critical zone is breached.
The XRP is currently clinging to the support level of $2.74, but the emerging bearish trend threatens its position. Analyses of capital flows and futures contracts reveal an unfavorable scenario for XRP in the coming days, with potential corrections toward $2.6 or even $2.4.
Open Interest (OI) data on XRP recently reached record highs, a situation typically associated with bullish prospects. However, the market has yet to confirm this positive trend. Additionally, the average cost marker highlights the critical threshold of $2.8 that needs close monitoring.
The spot and futures markets for XRP indicate seller dominance, with declining volumes and marked resistance at $3.4. The weakness of Bitcoin, dropping below $110,000, further exacerbates pressure on XRP.
XRP futures contracts also show a selling phase from traders, reinforcing the bearish sentiment. Open Interest (OI) data confirms this downward trend over the past two weeks.
XRP has broken below its bullish trendline and is now attempting to reclaim it above $2.83. These liquidations can be positive signals as many investors panic-sell in anticipation of a deeper drop.
This is why it’s crucial to monitor the support at $2.74, which corresponds to the low point of the demand zone and smart money accumulation area. If smart money has decided to accumulate below this trendline after its liquidation, it means they are defending this support at $2.74.
Conversely, a drop below this support will drive Ripple toward the next defense zone at $2.4.
Although still too weak to draw definitive conclusions, the bullish divergence of the RSI on the 4H timeframe is an encouraging signal for a potential rebound toward $3.4.
In summary, XRP’s situation remains concerning with a persistent bearish trend. As long as Ripple maintains above the support levels of $2.74, a favorable outcome remains possible. However, vigilance is necessary given the negative market signals, which suggest a potential drop to $2.4 if the crucial support gives way.
XRP still has a chance to reach a new peak in 2025, as Ethereum could lead the highly anticipated altcoin season. Here’s how to buy XRP in case of a rebound from this crucial support:
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Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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