Per Coinglass data, XRP’s open interest has soared past the $4 billion mark, illustrating heightened market liquidity and activity since more traders are entering leveraged positions.
High leverage can amplify price movements, setting the stage for a possible XRP short squeeze.
What’s in Store for XRP at the $1.70 Zone?
Based on the materialization of an inverted v-shaped pattern on XRP’s daily chart, the fourth-largest cryptocurrency based on market capitalization is not out of the woods yet.
This is based on the fact that this pattern indicates a dramatic shift in market sentiment from optimism and buying enthusiasm to fear and selling pressure.
If this downward momentum is not tamed, XRP might slip to the $1.70 support zone because this would completely validate the inverted v-shaped formation.
Market analyst Bit Bull was of a similar opinion that XRP needs to hold the $2.15 level to avoid a nosedive to $1.55.
She pointed out, “XRP is sitting right at the edge of a key support zone. After months of sideways movement, the structure looks primed for a major breakout or breakdown. If bulls hold this level, upside potential toward the $7.00 zone is still on the table. If not, eyes shift to $1.55 for the next major demand.”
Source: Bit Bull
As XRP continues traversing a tight consolidation phase, anything is possible because volatility can build either on the upside or downside with $1.70 being the level to watch if the latter happens, owing to the volatility expected at this level.
Therefore, caution should not be thrown to the wind.
XRP and Altcoins Endure Longest Crypto Slump on Record, But Hints of a Rebound Remain
The altcoin market is enduring its longest bear phase on record, surpassing the 2018–2019 downturn. This extended slump has seen major digital assets like XRP struggle to regain momentum despite intermittent rallies.
XRP, currently trading around $2.22, has experienced significant volatility in recent months.
After peaking at $2.73 in late 2024, it has declined by over 20%, with technical indicators signaling bearish momentum.
Notably, the number of active addresses on the XRP Ledger has dropped by 53% over the past month, indicating reduced user engagement and liquidity.
Despite these challenges, there are optimistic projections for XRP's future. Analysts from CoinLore anticipate that XRP could reach $4.27 by the end of 2025, representing a near doubling from current levels.
Similarly, CoinMarketCap forecasts an average price of $3.08 for XRP in 2025, with potential peaks up to $4.59, contingent on favorable developments such as Ripple's legal victories and increased adoption of its payment solutions.
A significant development influencing XRP's outlook is the U.S. government's announcement in March 2025 of a Strategic Crypto Reserve, which includes XRP among other major cryptocurrencies. This move aims to bolster the digital asset sector and could enhance XRP's credibility and adoption.
Furthermore, Ripple RLUSD stablecoin continues to gain steam after securing listings on Zero Has and Revolut earlier this year, in the process, stamping its authority in the fintech ecosystem.
The RLUSD stablecoin recently got a boost after the Dubai Financial Services Authority recognized it as a crypto token that is eligible for use at the Dubai International Financial Center.
Conclusion
While the altcoin bear market persists, XRP's short and long-term performance will largely depend on market sentiments, such as the materialization of a short squeeze and increased demand with the RLUSD stablecoin already leading the charge.
