Key Insights:
- XRP experts predict a positive price movement that may reach $27-$33 during May 2025 based on recurring market patterns.
- The decreasing patterns of derivatives volume and open interest show potential for an upside breakthrough according to liquidity trends.
- The technical indicators display conflicting trends because resistance occurs between $2.50 and $2.60 while support exists from $2.20 to $2.25.
Crypto analysts are observing bullish momentum despite a decline in open interest and trading volume. Market watchers are analyzing historical price patterns, liquidity trends, and technical indicators to assess potential future movements. Some experts predict a substantial price increase in the coming months, while others highlight short-term consolidation.
Historical Price Patterns Indicate Possible Breakout
Egrag Crypto, a crypto analyst, has shared a bullish forecast for XRP based on historical price patterns. He suggests that XRP could see a major price increase if it follows a pattern similar to the 2017 cycle.
According to Egrag Crypto, XRP’s price action resembles its movement before the 2017 breakout. He points out that during the last major cycle, XRP surged by 2,500% from the lower end of a price channel within 175 days. If this pattern repeats, XRP could potentially reach a price range of $27 to $33 by May 2025.
Concurrently, Egrag emphasizes that XRP price maintains its position above the 21-day Exponential Moving Average (EMA) as an indicator of market strength.
XRP’s Liquidity Trends and Open Interest Decline
Another market analyst, Cryptoinsightuk, studied XRP’s open interest along with liquidity patterns. The market data shows that short-term open interest now matches pre-Strategic Reserve announcement numbers. The price shows indications of creating a higher low that suggests potential bullish momentum.
From a broader perspective, the analyst highlights that while some liquidity remains below the price, there is a larger concentration of liquidity above. This could mean that a breakout to the upside is possible. He also draws comparisons between XRP’s price movement and Bitcoin’s past price action before its last upward push.
Declining Derivatives Activity and Market Sentiment
XRP derivatives trading volume plummeted as it decreased by 45.23% to $20.22 billion. Open interest decreased by 18.48% during this period to sit at $3.23 billion. The decline in options trading volume reached a new low since the market recorded a 92.19% reduction. The options open interest numbers have experienced a marginal rise, which amounts to 5.45%.
Despite these declines, sentiment among Binance traders remains optimistic. The long/short ratio on Binance is 3.8:1, indicating that more traders are taking long positions. However, the overall 24-hour long/short ratio of 0.9554 suggests a more balanced market, with a slight tilt toward short positions.
The combined total of liquidations reached $58.15 million during the last 24 hours as long traders incurred $46.10 million in losses. The recent market price decline caused long positions to suffer greater liquidations than short positions in the cryptocurrency market.
XRP Price Technical Indicators Show Mixed Signals
The technical analysis shows XRP holding a moderately negative position in the market currently. The market shows short-term bearishness because the 9-day EMA exists below the 26-day EMA. A possible trend reversal occurs because the Moving Average Convergence Divergence (MACD) indicator shows its indicators are starting to rise.
The Relative Strength Index shows a 47.93 reading, thus indicating a neutral market condition. The Ichimoku Cloud currently serves as a dual barrier that protects the price movement. Market trading volume maintains steady levels except when sudden spikes mark heightened trading periods.
Recent price action shows that resistance awaits between $2.50 and $2.60. XRP finds support at various levels between $2.20 and $2.25. A bullish price movement might emerge when XRP manages to surpass resistance with high trading volume. A price decrease beneath this support threshold might trigger additional market declines.
Disclaimer
In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
Olivia Stephanie is a FinTech enthusiast with a keen understanding of financial markets. Her passion for economics and finance has led her to explore emerging blockchain technology and cryptocurrency markets.