XRP price prediction: XRP enters danger zone: XRP price falls below $1.50 while open interest surges 12% – what will happen next?
XRP price trend turns bearish as lower highs continue
On the price chart, the trend clearly remains bearish. XRP continues to print lower highs and has slid steadily from the top of $3.50 towards the $1.50 region. Normally, weakening prices would be accompanied by reduced participation, but this time derivative activity increased and a noticeable difference formed that determined the current positioning.
Why the XRP price is falling despite increased market activity: Open Interest increased by 12% while the XRP price fell
Crypto analyst Maartun stated that Open Positions increased by approximately 12% in the last 24 hours, according to the AMBCrypto report. Rather than a single spike, the increase has increased steadily over multiple sessions, particularly the charity rallies seen in November and early January. This growth also paralleled increased ETF desk activity and heavier hedging flows, signaling more directional transactions as well as institutional participation.
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Increasing leverage increases volatility risks for XRP
However, increased Open Interest during a price decline usually indicates leverage entering the market rather than strong accumulation. In this case, the expansion likely reflects speculative positioning resulting from traders adding short positions or attempting to buy late long dips. Liquidation clusters and sell alerts forming near local highs support this interpretation and suggest that leverage, not spot demand, is driving the increase.
Market stability tends to weaken as leverage increases as the price continues to be squeezed. Historically, this type of setup usually results in increased volatility rather than a quick reversal.
The derivatives market offers new evidence of increasing pressure. Funding rates, which have been hovering near neutral, have recently fallen slightly into negative territory. This shows that short positions pay off long positions; This is a sign of increasing bearishness rather than balanced positioning. At the same time, Open Interest-heavy funding tightened as XRP fell from the $3.00 region to $1.50, reinforcing the view that leverage rather than spot selling was behind the move. Also read: John Locke quote of the day: ‘Here no man’s knowledge can extend beyond him…’ – life lessons from the philosopher and father of liberalism
Long/short ratio shows sellers are firmly in control
The long/short ratio strengthens this picture. As price trends decline, buyer selling volume consistently exceeds buying pressure and sellers maintain control over various time periods. This reflects belief in a clear direction rather than random or low-confidence trading.
XRP liquidation zones pose risk of squeeze on both sides
Liquidation data reveals how fragile the structure has become. The heatmap ladders show heavy clusters at $1.35 to $1.45 above the current price, while deeper long liquidations are positioned between $1.18 and $1.22. This stacked setup leaves XRP vulnerable in both directions. A continuation of the rise may trigger a short position squeeze, while a continuation of weakness may lead to the risk of gradual liquidation among long positions. The market remains prone to compression rather than settling.
XRP Price Outlook: Key resistance at $1.44 could decide XRP’s next move
From a technical perspective, XRP is still trading in a clear downtrend as it approaches key support. The price recently tested the $1.15 low, which is in line with the 100% Fibonacci retracement where short-term buying briefly appeared. This bounce carried XRP to $1.29, but momentum remained weak and the overall bearish structure remained intact.
Above current levels, $1.44 stands as resistance from previous support and is strengthened by the 78.6% retracement near $1.39. A daily move above this area will help ease the downside pressure and allow the price to turn towards the 50% retracement near $1.73. However, according to the AMBCrypto report, failure to hold $1.15 on a daily closing basis would likely further weaken market confidence and subject XRP to a deeper decline towards the psychological $1.00 level.
FAQ
Why is the XRP price falling right now?
XRP is in a clear downtrend and is printing lower highs as it slides towards key support levels above $3.50.
What does increased open interest usually indicate?
In falling markets, this often indicates speculative positioning, such as short positions or long positions with late dip buying.
