XRP Price Drops 4.8% to $2.35 Amid Increased Selling Pressure
XRP has declined 4.8% in 24 hours, trading at $2.35 due to significant selling pressure. This follows the Ripple lawsuit clearance, as bulls failed to breach the $2.50 resistance. Daily selling volume increased by 15%, indicating heightened bearish sentiment.
On-chain Metrics Show Weakness
- XRP futures open interest fell 4.21% to under $3.9 billion, a 50% drop from January's peak of $7.8 billion.
- This decline suggests reduced market capital inflows, potentially worsening price drops due to diminished buying pressure.
- Liquidations exceeded $10.41 million, primarily in long positions.
- The funding rate for XRP perpetual futures shifted to negative, indicating bearish market sentiment.
Future Projections
- Analysts predict potential further declines, with critical support at $2—a loss could lead to prices dropping to $1.2.
- Some analysts maintain a bullish outlook, citing a "Bullish Rectangle Pattern," suggesting a possible breakout leading to new all-time highs.