XRP’s recent failure to surpass the $2.20 resistance level has raised concerns about a possible price decline, as technical indicators and market dynamics suggest bearish pressures may persist.
According to technical analysis, XRP’s inability to break through the $2.20 mark indicates strong selling interest at this level. The presence of negative funding rates and decreased open interest in futures markets further supports a bearish outlook. Negative funding rates imply that short sellers are compensating long holders, reflecting prevailing pessimism among traders. Additionally, open interest has declined from a peak of $7.87 billion on January 17 to $3.06 billion as of April 10, suggesting that traders are closing positions and reducing exposure.
The broader cryptocurrency market has also been affected by recent economic developments, including the U.S. administration’s announcement of new trade tariffs. These tariffs have heightened investor caution, leading to reduced risk appetite and impacting assets like XRP. The potential for decreased international trade has raised concerns about the demand for XRP’s utility in cross-border transactions.
Despite these challenges, some analysts believe that if XRP can maintain support around the $1.86 level, there is potential for stabilization and a possible rebound. However, a decisive drop below this support could accelerate selling pressure, potentially driving the price toward the $1.61 mark or lower.
Investors are advised to monitor key support and resistance levels closely, as well as stay informed about broader market trends and economic policies that could influence XRP’s price trajectory.
