XRP Bulls Defend $2.40 Amid Market Caution
XRP has seen a modest recovery over the past 10 days, rising nearly 7% amid a broader crypto market rebound and the conclusion of Ripple’s long-running legal battle with the US Securities and Exchange Commission (SEC). Despite this, concerns remain over its ability to sustain momentum, with on-chain data suggesting a lack of strong buying activity.
Currently trading at $2.43, XRP remains significantly below its multi-year high of $3.40. In previous instances, such as November 2024, similar price levels led to rapid gains as high spot market bids pushed XRP past $3. However, this time, spot and perpetual markets appear subdued, raising questions about the altcoin’s near-term trajectory.
Futures Markets Show Bearish Sentiment
XRP’s futures market data indicates a cautious approach from traders. The cumulative open interest (OI) in perpetual futures across major exchanges has remained below $4 billion since 4 March, a sharp drop from the $7.86 billion peak recorded on 18 January, just before XRP reached its seven-year high.
Additionally, XRP funding rates have oscillated around zero in the past two weeks, remaining negative for most of the period. Negative funding rates suggest that short sellers are paying fees to keep their positions open, typically a bearish signal.
Another concerning factor is XRP’s spot cumulative volume delta (CVD), which has remained negative over the last two weeks. This indicates that selling volume has consistently outweighed buying volume, hinting at a potential downward trend.
With these indicators in mind, analysts are cautious about whether XRP has the strength to push higher in the near term.
Muted Whale Activity Limits Market Volatility
XRP whale activity has been relatively quiet over the past week, with large holders showing little movement in either direction. Data from Santiment reveals that wallets holding between 1 million and 10 million XRP have maintained their total holdings at around 5.8 billion tokens since 15 March.
This lack of activity could have mixed implications. On one hand, it reduces market volatility, as whale trades often drive significant price swings. On the other, it signals indecision among major investors, with many appearing to adopt a wait-and-see approach.
Without whale-driven momentum, XRP’s price is likely to remain range-bound unless an external catalyst shifts market sentiment.
Key Support Levels to Watch
XRP’s recent price rebound allowed it to reclaim critical support levels, including the psychologically significant $2.40 mark. However, traders remain cautious about whether this support can hold.
If XRP loses the $2.40 level, analysts identify the next key area of interest between the 18 March low of $2.22 and the previous range low of $1.90 recorded on 11 March. Should the price dip further, it may target liquidity clusters within this range.
A sharp rebound from this zone would indicate renewed buying interest. However, failure to hold above these levels could see XRP drop toward the 3 February low of $1.76, where the 200-day simple moving average (SMA) is positioned. This suggests a strong potential demand zone just above $1.75.
Crypto analyst Gemxbt commented on XRP’s current position, noting, “XRP is in a consolidation phase with support around $2.35 and resistance at $2.50. The neutral RSI at 51 and low volume indicate a lack of strong price action. I suggest watching for a break of these levels for a clearer direction.”
With XRP struggling to gain strong upward momentum, traders will be closely monitoring whether the $2.40 support level holds or if further declines are on the horizon.
