Key Insights
- XRP is trading in a descending triangle near $2.70 support at the time of writing.
- Leverage reset and early accumulation indicate that the downside risks are dwindling.
- Technical confluence indicates that the asset could rebound toward $4.80.
XRP price has been stuck in a downtrend for weeks. The asset has lost almost 20% in the past 45 days and trades near the $2.70 support.
It consolidates within a descending triangle pattern, historically signaling caution among traders. Still, on-chain data and technical factors indicate that a rebound could be forming.
Leverage Reset Creates Safer Conditions for XRP Price
XRP’s futures data shows a substantial reduction in investor trading activity. Open interest has fallen from $11 billion to $7.5 billion in the past month, according to Coinglass.
This decline indicates that there are now fewer overleveraged positions and less risk of cascading liquidations. Put more, the XRP market appears to have cooled.
Over on Binance, XRP’s estimated leverage ratio has reset to its yearly average. This indicator tracks the ratio of open interest to exchange reserves for context.
The reset means, again, that traders are no longer heavily overextended. The market cool-down has created more stable conditions for intense price action.
Early Accumulation Hints at Bottom Formation
On-chain data has added weight to the bullish case. Net taker volume has moved closer to neutral, while aggregated spot CVD shows that buyers are regaining strength. This trend indicates that traders may already be accumulating at current levels.
According to the futures markets, aggregated CVD has declined steadily. On the other hand, funding rates have normalised to quarterly averages.
When combined, these signs indicate that crowded long positions have been cleared. This is another sign of a cooler market. Also, it opens the doors for new buyers to enter without fear of sudden liquidations.
Technical Indicators Point Toward a Breakout
XRP’s daily chart shows several major technical zones. The price is consolidating near $2.70, with a fair value gap between $2.35 and $2.65. This area is strongly in line with Fibonacci retracement levels between 0.5 and 0.618. These levels have historically provided strong reversal points.
The Relative Strength Index (RSI) currently sits at 43. This indicates that the market has mildly bearish momentum but not oversold conditions.
XRP could rally by 60% to 85% if the fractal pattern observed earlier this year repeats. That would put the target range near $4.50 to $4.80 by Q4.
According to analyst CRYPTOWZRD, the XRP market seems encouraging. However, traders might need more healthy candle formations to enter correctly.
Analysts See Upside Promise if Support Holds
Some market analysts are still bullish. Trader Javon Marks pointed out that XRP holds above a significant price level of around $2.47. As long as this level remains intact, he expects a rally toward $4.80, representing an upside of around 66%.
Other analysts say XRP could aim for new highs if the market’s strength returns. Crypto Tony believes a close above $2.90 would strengthen the bullish case.
Up or Down for XRP?
XRP’s price action shows that the market has cooled, without entirely breaking down. The lower leverage and signs of accumulation will likely create the right conditions for stability.
At the same time, technical support levels and historical fractals are showing a possible roadmap for a rebound toward $4.80. Still, there are a few risks. Exchange reserves are high, and ETF decisions are a source of uncertainty.
The weak momentum is making traders cautious. XRP’s breakout depends on holding the $2.70 support zone. It also needs to reclaim resistance at $2.90. Only then can it attempt to escape bearish pressure.
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