XRP Price Faces Bearish Pressure
XRP has struggled throughout December, with crucial support levels unable to handle the rising selling pressure. It’s been hanging around the $1.80 mark lately, but recent evaluations suggest the situation might be quite unstable.
Bearish Divergence Seen Between RSI and XRP Price
A market analyst known as CryptoOnchain shared insights on the CryptoQuant platform, pointing out that both technical and on-chain indicators are signaling a bearish phase for XRP.
The analyst noted a concerning trend on the weekly chart. While XRP seems to be lingering near recent highs, hinting at a potential recovery, its momentum tells a different story altogether.
CryptoOnchain highlighted a bearish divergence between the Relative Strength Index (RSI) and the XRP price. This means even though the price might be inching towards recent highs, the RSI is showing a decline, signaling that momentum is slipping.
Such divergences can imply a weakening buying power and a drop in momentum. Historical trends suggest that this pattern can often lead to substantial price corrections.
Moreover, XRP is currently testing the crucial psychological level of $1.80. If it fails to maintain this level, we could soon see a significant sell-off.
A broader technical view indicates that for any meaningful upward movement, momentum must improve.
Binance Open Interest Hits New Lows
CryptoOnchain also pointed out some shocking trends behind the scenes, particularly concerning the metric of open interest, which represents the total value of outstanding XRP derivatives contracts on Binance.
Recently, XRP’s open interest dropped to $450 million, the lowest it’s been since November 2024. A significant decline in open interest typically signals a large outflow of leveraged funds from the futures market.
This pullback appears to indicate that traders are either being pushed out or are leaving their positions out of anxiety. Coupled with diminishing price momentum, it paints a less-than-encouraging picture of investor interest—suggesting a retreat due to lack of confidence rather than gearing up for a bullish trend.
With multiple signals converging to suggest a bearish outlook for XRP, traders should exercise caution. A drop below the $1.80 level could bring serious trouble for the token’s price. Currently, XRP is trading at around $1.87, reflecting a 1.5% increase over the last 24 hours.
