Ripple's XRP is currently trading around $0.6900, down nearly 3% on Wednesday. This decline, along with a drop in open interest, suggests the possibility of a continued price correction. However, some on-chain indicators still point to long-term bullish potential for the token.
Decline in Open Interest Could Extend Price Correction
$XRP's open interest (OI) has fallen by over 10% in the past 24 hours, from $1.2 billion on Tuesday to $1.09 billion on Wednesday. Open interest represents the total value of outstanding contracts in the derivatives market, and a decline in OI often signals reduced investor interest. If this trend continues, it could extend $XRP’s price correction.
However, there are factors that could support a rebound. Notably, Robinhood recently relisted XRP on its platform, citing high community demand over the past month. This relisting could generate fresh demand for the token and drive its price upward.
In addition, Ripple CEO Brad Garlinghouse is reported to have met with President-elect Donald Trump and his administration to discuss a potential regulatory framework for cryptocurrencies, which could help boost confidence in XRP’s future prospects.
On-chain data from CryptoQuant also shows an increase in active addresses on the XRP Ledger, suggesting growing bullish momentum.
$XRP Faces Resistance Near $0.7440
$XRP’s price has struggled to break through a strong resistance level around $0.7440. According to Coinglass, XRP has dropped 3% in the last 24 hours, with $14.73 million in liquidations, including $11.16 million from long positions and $3.58 million from short positions.
On the daily chart, XRP was rejected at the $0.7440 resistance level for the second consecutive day. This level has been a significant barrier since July 2023, and XRP has faced rejection near it five times over the past year.
With this rejection, XRP could pull back to support around $0.5700. However, if the price rebounds from this support, it could rally back toward $0.7440. A breakout above this resistance could propel XRP toward $0.8547.
The Relative Strength Index (RSI) is currently in the oversold zone and trending downward, signaling a potential correction in price.
If XRP closes below $0.5700 on the daily chart, this bearish scenario would be confirmed, invalidating the possibility of a price recovery.
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