Will XRP Price Regain Upside Anytime Soon After Recent Underperformance?

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Will XRP Price Regain Upside Anytime Soon After Recent Underperformance？

price has severely underperformed the rest of the altcoins market with no returns over the past month, and correcting more than 15% from its monthly high of $2.6. As the coin once again tests the crucial support at $2.2, analysts are wondering what could be its next trajectory.

XRP Price Remains at Crossroads

Crypto analyst EGRAG Crypto has highlighted a potential bullish setup for XRP, with a double bottom pattern. This suggests that the Ripple-related cryptocurrency could start the upside anytime.

According to the analyst, a decisive close above $2.30 on the 3-day chart and above the 21 EMA would confirm the pattern, paving the way for key price targets of $2.5, $2.65, and $3.0.

EGRAG emphasized that maintaining critical support at $2.07 is essential for bulls to sustain the current momentum. Falling under this support could possibly invalidate this bullish outlook.

Ripple Open Interest Surge Shows High Trading Activity

As per the CoinGlass data, the XRP futures open interest has increased to $3.95 billion, highlighting a surge in speculative trading activity. Market analysts suggest this uptick could be an early indicator of a potential price breakout in the near term. Speaking to CoinDesk, Bitget chief market analyst Ryan Lee said:

“XRPs open interest has surged to nearly $5 billion (over the weekend), indicating increasing speculative activity as traders take sizable positions in the derivatives market. This spike suggests strong potential momentum, with market participants bracing for a decisive move.”

Without a clear catalyst, Lee cautioned that elevated open interest levels could heighten market volatility, potentially leading to significant liquidations if market sentiment shifts negatively.

Lee added:

“Without a clear catalyst, such elevated open interest could exacerbate volatility in either direction. A bullish surge may trigger a short squeeze, while an influx of profit-taking or macro-driven risk-off sentiment could fuel liquidations and downside pressure.”

The recent announcement of an XRP Treasury by VivoPower failed to garner enough interest in the Ripple altcoin to drive the price higher. However, any positive macro development could lift the spirits of the overall market.

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