XRP Price Approaches a Period of Heightened Volatility After a Sudden Weekly Decline

This downturn coincides with a general crypto market correction, as Bitcoin and other major altcoins experienced price pressure.

After a seven-week streak of gains, XRP encountered a period of heightened volatility. The token slid from a recent peak of $2.50 to touch a low of $2.06, marking its first weekly loss since early March. This downturn coincides with a broader crypto market correction.

Technical and derivatives data suggest limited upside potential for the token in the near term, and market participants remain indecisive about the next trading direction.

Earlier this week, XRP attempted a recovery after peaking at $2.1623. However, the asset faced consistent selling pressure that pushed the price down to a session low of $2.04. A minor rebound lifted the price to $2.07.

This represents a 4.02% drop over the last 24 hours, based on CoinMarketCap data.

Despite the price decline, XRP's trading volume recorded an increase. The 24-hour trading activity increased by 20.56% to reach $3.76 billion. Meanwhile, the token's market capitalization fell by 3.69% to $120.74 billion.

Circulating supply remains at 58.2 billion XRP, and the token maintains the #4 position in the global crypto rankings.

Source: CoinMarketCap

However, market data shows repeated failure to break above the $2.16 resistance level, confirming the presence of bearish momentum.

Indicators Reflect Limited Momentum

Technical indicators on the 4-hour chart hint at a cautious outlook. Current data indicates that the Relative Strength Index (RSI) stands at 30.75 in the close proximity of the oversold zone. The signal line currently shows 31.68 which has crossed below the MACD line at 32.54. This crossover, occurring at around 00:00 (GMT+8), signals less buying interest. When price falls beneath 30 levels it confirms over-sold market conditions that often trigger brief market reactions.

MACD indicators show signs of weak momentum at the present moment. The MACD line rests above signal line -0.0598 at 0.0592. The nearly-flat histogram at -0.0596 indicates market participants remain largely undecided about a trading direction. The lack of a successful bullish crossover further diminishes near-term bullish sentiment.

Derivatives Volume Surges Amid Short Liquidations

The derivatives market related to XRP has experienced a major surge in activity. Total trading activity increased by 24.30% to reach $8.72 billion, whereas option market activity jumped by 222.23% to $6.93 billion. Options open interest increased 114.18% to reach $990.54K. In contrast, overall open interest dropped by 3.16% to $3.55 billion.

The long/short ratio across platforms stands at 0.9751, indicating a nearly balanced sentiment. Exchange-specific data, however, remains bullish. Binance's XRP/USDT ratio by accounts is at 2.95, and OKX reports 2.34. Binance's top traders show a ratio of 2.60 by accounts and 1.22 by positions.

After a seven-week streak of gains, XRP encountered a period of heightened volatility. The token slid from a recent peak of $2.50 to touch a low of $2.06. This marks its first weekly loss since early March, when it registered a 30% drop.

This downturn coincides with a broader crypto market correction as Bitcoin and other major altcoins experienced price pressure. Technical and derivatives data suggest short-term price doubts while XRP/USD trading occurs within a narrow range.

Recently, XRP attempted a recovery after peaking at $2.1623. However, the asset faced consistent selling pressure that pushed the price down to a session low of $2.04. A minor rebound lifted the price to $2.07.

This represents a 4.02% drop over the last 24 hours, based on CoinMarketCap data.

Despite the price decline, XRP's trading volume recorded an increase. The 24-hour trading activity increased by 20.56% to reach $3.76 billion. Meanwhile, the token's market capitalization fell by 3.69% to $120.74 billion.

Circulating supply remains at 58.2 billion XRP, and the token maintains the #4 position in the global crypto rankings.

Source: CoinMarketCap

However, market data shows repeated failure to break above the $2.16 resistance level, confirming the presence of bearish momentum.

Indicators Reflect Limited Momentum