As XRP price hovers around $2.08, traders are facing conflicting signals from the spot and derivatives markets, leading to short-term indecision. This stagnation is in line with the trends seen in Bitcoin and Ethereum, with XRP trading in a tight range between $2.00 and $2.15. However, this consolidation could serve as the groundwork for a potential breakout in the near future.
On the weekly chart, XRP’s gains have decreased to 1.8%, reflecting the sideways movement of major assets like Bitcoin and Ethereum. Despite macroeconomic uncertainty and regulatory concerns, XRP continues to show positive signs in the derivatives market. Open interest has crossed $3 billion, indicating a bullish sentiment among traders.
The derivatives market for XRP further highlights the positive outlook for Ripple’s price. While daily trading volume has decreased, options volume has surged, signaling increased interest in leveraged bets on volatility. The long/short ratio on Binance also indicates a bullish skew, suggesting that traders are leaning towards long positions.
The XRP liquidation heatmap reveals a key risk zone above $2.30, where short liquidations could trigger a breakout rally. Recent data shows that liquidations have been nearly balanced between long and short positions, indicating high leverage with little directional conviction. XRP’s consolidation at $2.08 sets the stage for a potential volatile move, driven by broader market sentiment and a breakout above the $2.30 threshold.
Looking ahead, XRP’s price forecast suggests a push towards $2.22 if bulls reclaim the 50-day EMA. A breakout above this level could lead to further gains towards $2.25 and $2.30, where significant short liquidations are clustered. The RSI remains neutral but shows early bullish momentum, supporting a possible upside scenario. However, failure to surpass $2.22 could result in a rejection and a pullback towards the 200-day EMA at $1.95.
In conclusion, the current situation for XRP at $2.08 indicates a potential breakout in the near future, with key resistance levels around $2.22 and $2.30. Rising options volume and a bullish sentiment in the derivatives market suggest institutional interest and positive outlook for XRP’s price action. Traders should monitor these levels closely for potential trading opportunities in the coming days.
