XRP continues to consolidate below a major resistance for over a month, frustrating investors as the altcoin struggles to gain upward momentum.
This prolonged slump has affected traders' confidence, with many choosing to pull back amid the lack of significant price growth.
XRP traders are unsure
Open interest (OI) in XRP futures has dropped by $1 billion in the past 24 hours, indicating a loss of confidence among traders. Just a day earlier, OI had surged to $2.9 billion, driven by expectations of a price rally. However, when those hopes failed to materialize, traders began to withdraw their funds.
This sudden pullback indicates growing bearish sentiment among XRP enthusiasts. The decline in open interest highlights growing doubts about XRP’s ability to break through current resistance levels, which could further dampen market activity in the short term.
XRP’s overall momentum is also showing signs of weakness. The DAA price divergence is currently indicating a sell signal, reflecting declining participation and stagnant price action. This bearish indicator suggests that traders may start locking in profits, which could lead to further price declines.
If selling pressure intensifies, XRP could face additional challenges. The combination of declining participation and investor hesitation could hamper the altcoin’s recovery, keeping it stuck in a consolidation phase until stronger market signals emerge.
XRP Price Prediction: Escaping Consolidation
XRP price has dropped by 20% over the past month but has managed to hold above the $2.00 support level. However, the altcoin is holding below the critical $2.73 resistance, unable to break out and start an uptrend.
If the bearish factors persist, Ripple could continue to consolidate with the risk of losing its support at $2.00. Such a scenario would further undermine investor confidence and put additional downward pressure on the price, extending the current slump.
Conversely, if the overall market conditions turn bullish, Ripple could break the resistance at $2.73 and target the all-time high at $3.31. Achieving this level would invalidate the bearish theory and signal a renewed uptrend, attracting more investors back into the market.