XRP Market Overview

XRP has failed to maintain the critical $2.25 support level, leading to historical patterns that indicate a potential decline of 13.5% to $1.90.

Market Sentiment

Despite recent positive developments, the short-term market sentiment for XRP remains bearish.

Ripple (XRP) has been experiencing a steady decline in Futures Open Interest (OI) since it reached an all-time high. According to on-chain analytics firm Coinglass, on January 18, 2025, XRP’s Futures OI stood at $7.62 billion. Currently, it has fallen to $3.02 billion, which is close to the lowest level of 2025, reflecting a reduction of more than 50% from its all-time high.

This decline in OI is likely a result of the prevailing bearish outlook in the cryptocurrency market, where notable price fluctuations often trigger liquidations of open positions, contributing to trader FOMO and explaining the significant drop in XRP’s OI.

On-chain Metrics

Interestingly, this decline has occurred during a time of significant market developments, including the inauguration of pro-crypto U.S. President Donald Trump and multiple Spot XRP Exchange-Traded Fund (ETF) filings by asset managers. Despite these advancements, short-term sentiment remains pessimistic, leaving intraday traders largely unaffected and adhering to the downward trend. In contrast, long-term holders and institutions are capitalizing on the decline, making considerable accumulations.

Recent data indicates a significant outflow of $187 million worth of XRP tokens from exchanges in the past week, suggesting potential accumulation that could foster buying pressure and future upward momentum. However, the current market sentiment has prevented this potential from materializing.

Price Analysis

As of recent updates, XRP was trading around $2.23, experiencing a slight price decrease of 0.85% in the past 24 hours. During this timeframe, trading volume fell by 35%, indicating reduced participation compared to the previous day.

According to AMBCrypto’s price analysis, XRP appears bearish as it has dropped below the crucial support level of $2.25, closing a daily candle beneath it. Following this breakdown, there is a strong likelihood that XRP could decline by 13.5%, reaching the next support level at $1.90 and approaching the 200-day Exponential Moving Average (EMA).