- XRP consolidates at $3.10, with resistance at $3.50 and support at $2.90-$3.00; a break below $3 may lead to further downside.
- Futures open interest surges to $7B, indicating increased speculation; high leverage could risk a long squeeze if price weakens.
- RSI at 46.57 and bearish MACD suggest weak momentum; a bullish crossover and RSI above 50 could confirm an upward trend.
XRP’s recent price action has been intriguing as uncertainty looms over the Ripple case. On January 25, XRP dipped 1.66% after Friday’s 1.87% surge, trading at $3.10. The Better Markets filing for an Amicus Brief supporting the SEC’s appeal has led to negative sentiment.
Analyst Javon Marks notes XRP’s potential breakout toward $10+ on the 9 hour timeframe, on the longer term. XRP’s performance will likely be affected by SEC’s legal approach, where a pause or withdrawal could potentially drive prices above its all-time high, while a continued appeal might push prices below $2.50.
XRP Price Levels and Technical Indicators
XRP trades within a consolidation range, at $3.10. On a 4 hour time frame the highest level was at $3.13 and lowest $3.09, with volume at 9.98 million. Resistance is at $3.50, the prior local high, while support is at $2.90 to $3.
Late December 2024 and early January 2025, XRP rallied strongly from a low of $2.50 to over $3.50. However, the price now consolidates, indicating possible profit taking or a cooling phase after the rally.
The RSI, at 46.57, shows neutral momentum but a drop below 40 could indicate a strong bearish pressure. The MACD line at -0.0048, below the signal line at 0.0007, suggests weak downside momentum. The histogram remains negative, indicating subdued bullish pressure. However, a bullish crossover on the MACD could indicate an upward shift if price strength increases.
Potential Bearish and Bullish Scenarios
Breaking below $3 may increase selling pressure, pushing XRP toward $2.90. A failure to maintain $2.90 could see prices test $2.75 to $2.50. If RSI drops below 40 and the MACD histogram continues its decline, bearish momentum may strengthen further.
On the upside, a move above $3.10 and a break of $3.20 resistance could trigger renewed bullish momentum. A bullish MACD crossover alongside rising RSI above 50 would confirm a potential upward trend. XRP might then retest $3.30 and target $3.50, with further momentum potentially driving it to $3.80 or higher.
XRP Futures and Market Sentiment Analysis
XRP’s futures open interest surged to $7 billion as prices rose from $0.50 to $3.50, indicating heightened speculative trading. Stable open interest levels in 2024 suggest market stability before this spike.
However, a divergence between price and open interest could suggest high leveraging, increasing the risk of a long squeeze. If open interest remains high while prices stagnate, speculative trading may continue.
A sudden decline in open interest might indicate profit taking or a cooling phase. A price drop below $3 could lead to liquidations hence further downward pressure toward $2.75. Maintaining high open interest and price above $3 could enable XRP to test higher levels, including $3.80 or $4.00.
