The post XRP Faces Prolonged Consolidation Below $2.73 Resistance Amid $1 Billion Decline in Futures Open Interest appeared on BitcoinEthereumNews.com.

XRP is currently experiencing significant challenges as it remains stuck below the critical resistance of $2.73, causing a wave of market skepticism. As trading volumes and investor confidence decline, XRP’s inability to break resistances is triggering increasing caution among traders. “The recent drop in Futures Open Interest by $1 billion underscores the growing bearish sentiment towards XRP,” a COINOTAG analyst noted. XRP faces mounting challenges as it struggles with resistance at $2.73, while Futures Open Interest declines by $1 billion, indicating bearish sentiment. XRP Futures OI sheds $1 billion Source: Coinglass Over the past 48 hours, XRP Futures Open Interest has seen a staggering decline of $1 billion, falling from $2.9 billion. This decline is a clear reaction to a failed breakout attempt that momentarily boosted trader optimism. As traders exited positions, the sudden drop in Open Interest reveals an increasing bearish outlook for XRP. The struggle to surpass key resistance levels enhances doubts about the token’s near-term recovery. XRP: Critical investor uncertainty? The Divergence in Daily Active Addresses (DAA) chart for XRP reveals a troubling discrepancy between price movements and network engagement. Despite XRP’s price rally in late November, the DAA divergence dropped sharply, indicating that the rise was not supported by proportional increases in network activity. This discrepancy suggests that the recent price shifts were largely influenced by speculative trading rather than genuine adoption or utility growth. Source: Santiment Following the recent rally, the DAA divergence has remained negative, reflecting a persistent skepticism among on-chain participants about the viability of future price increases. Without a significant rise in active addresses, XRP’s ability to maintain upward momentum looks precarious, casting doubts on any potential short-term recovery, unless network fundamentals show notable improvement. Key levels to watch XRP’s price remains at a crucial crossroads, defined by a lengthy consolidation phase…

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Filed under: News - @ December 29, 2024 3:16 pm