XRP Price Analysis: Bears to Force $0.45 Retest With this $595 Million Move (2024)

XRP Price Analysis

XRP price consolidated around the $0.47 on Friday June 28, limiting weekly losses to 3% despite intense market volatility, however, a rare market movement observed in the derivatives markets suggest further downside ahead.

XRP Price Erases Weekly Loses With 5% Uptick

As the global crypto markets made a negative start to the week, XRP was one of the worst hit coins in the top-10 crypto rankings. Between by the close of Monday June 23, XRP price had sunk to a 2-week low of $0.46.

However, bullish catalysts like VanEck’s Solana ETF application on June 27, lifted the sentiment surrounding the crypto market, send XRP price into a rebound phase.

The chart above shows how XRP had declined 5.6% at the start of the week, dropping as low as $0.46 on Monday. But as the crypto market sentiment improved during the week, XRP price flipped into a rebound phase.

At the time of writing on June 27, XRP price has now reached the $0.48 level, reflecting a 4% rebound from the weekly timeframe bottom.

Bears Drive XRP Open Interest to $595M amid Market Volatility

However, while demand for XRP in the spot markets may be lagging, recent movements observed in the derivatives markets suggest that bears had made large bets that XRP would suffer further downside. This move could nowan accelerated price downswing, if the current market recovery advances reverses

Coinglass Open Interest chart shows the total value of futures contract currently listed for a specific cryptocurrency. An increase in open interest often occurs when traders are confident in the current price trend.

The chart above shows that XRP open interest reached $595.7 million on June 28, having increased by $70 million from the $520.7 million futures contracts recorded on June 14.

This reflects a 14% surge in capital inflows within the last two weeks. But in comparison, XRP’s price has declined by 5% during that period.

When open interest rises during a price downtrend as observed above, it suggests that bears are in control of the market and piling on more short positions.

This bearish sentiment is further corroborated by the negative price movement, indicating increased selling pressure and a lack of confidence among investors in the near-term price recovery of XRP.

XRP Price Forecast: Bears Eyeing $0.45 Revisit

XRP price has surged to reclaim the $0.48 level at the time of writing on June 28. However, the Open Interest surging to $595 million amid market volatility suggests that bears could force another reversal toward the $0.45 level in the days ahead.

More so, technical indicators on the XRP daily price chart also affirm this bearish forecast.

The chart shows XRP’s price struggling to maintain upward momentum, with the Bollinger Bands indicating potential volatility. Currently, the price is trading around $0.4799, which is near the middle band ($0.4851). This suggests that XRP is in a relatively neutral zone but could be prone to further bearish movements if it fails to break above key resistance levels.

The upper Bollinger Band at $0.5038 acts as a significant resistance level. If XRP fails to breach this level, it may face increased selling pressure. The lower Bollinger Band at $0.4665 serves as the immediate support level. A drop below this could trigger a more pronounced downward movement, potentially revisiting the recent lows around $0.45.

The BB %b indicator, which is currently at 0.36, indicates that XRP is not in the overbought or oversold territory. However, the trend appears bearish as the %b value remains relatively low, suggesting limited upward momentum. The recent decline of 5.64% in just one day highlights the selling pressure XRP is under, with bulls struggling to regain control.

In conclusion, XRP needs to break above the $0.5038 resistance level to signal any bullish reversal. Failure to do so could lead to further declines, especially if it breaches the $0.4665 support level. Traders should watch these key levels closely to anticipate XRP’s next move.