- Ripple (XRP) has sparked renewed optimism among traders, with multiple buy signals and bullish sentiment from both retail and institutional participants.
- The price remains above a key technical level after a successful wedge breakout retest, currently trading at $2.37 with a slight daily gain.
- Liquidation data and open interest clusters suggest the potential for a short squeeze if XRP pushes above resistance, but funding rates and exchange flows indicate a market in wait-and-see mode.
- On-chain activity has declined, with fewer active addresses and transactions, hinting at waning retail engagement.
- The next move hinges on whether XRP can maintain support above $2.30 and break through resistance at $2.54.
Surge in Optimism: Buy Signals and Bullish Sentiment
Ripple’s XRP has recently become a focal point for traders seeking early signs of a turnaround. The hourly chart has flashed several TD Sequential buy signals, a technical indicator often associated with trend reversals and renewed upward momentum. This has not gone unnoticed—sentiment indicators reveal that both the broader trading crowd and more sophisticated investors are leaning bullish, fueling hopes for a sustained rebound.
Adding to the positive outlook, XRP continues to trade above a pivotal technical zone. After breaking out of a descending wedge pattern, the token has successfully retested the breakout level, reinforcing the idea that the recent move higher could have staying power. At $2.37, XRP’s price reflects a modest but meaningful 0.37% daily increase, suggesting that buyers are gradually regaining control.
Liquidation Clusters and Open Interest: The Battle Near Resistance
A closer look at derivatives data uncovers a landscape primed for volatility. The liquidation heatmap shows dense pockets of short positions just above the current price, particularly in the $2.40 to $2.45 range. If XRP manages to push higher, these shorts could be forced to cover, potentially triggering a rapid price acceleration—a classic short squeeze scenario.
Open interest across major exchanges like Binance, OKX, and Bybit is heavily concentrated in this resistance zone, further amplifying the stakes. Meanwhile, the risk of a sudden downturn appears limited in the near term, as long liquidation pressure is relatively subdued below $2.30. This dynamic creates a cushion for bulls, but also sets the stage for a decisive move if resistance is breached.
Despite these bullish undercurrents, the OI-Weighted Funding Rate remains nearly flat at 0.0017%. This neutrality suggests that neither buyers nor sellers have a clear upper hand, often a precursor to a period of consolidation before the next major breakout or breakdown. The stability in open interest trends supports this view, hinting that the market is coiling for its next act.
Exchange Flows and Market Indecision
Recent capital flows across exchanges paint a picture of uncertainty. On May 18th, XRP saw $42.74 million in inflows compared to $37.76 million in outflows. While this net positive flow indicates more money entering than leaving, the margin is not substantial enough to signal strong accumulation or a decisive shift in sentiment.
This ambivalence is echoed in trading behavior. Some participants appear to be positioning for a rebound, while others are content to lock in profits after recent price action. The result is a market that feels balanced on a knife’s edge, with neither bulls nor bears able to claim a clear advantage.
Declining On-Chain Activity: A Warning Sign?
Beneath the surface, on-chain metrics reveal a less encouraging trend. Daily active addresses have dropped to 8,706, and transaction counts have fallen to 123,160. This marks a significant decline from the higher engagement levels seen in previous months, suggesting that retail interest and network utility are both waning.
Such a drop in participation can be a red flag for sustained price growth. Even as XRP’s price holds steady, the lack of new users and reduced transaction activity may signal fading momentum. Unless this trend reverses, the rally could lose steam, making it harder for bulls to maintain upward pressure.
Technical Structure: Key Levels to Watch
From a technical perspective, XRP’s recent price action remains constructive. The token has managed to hold above the upper boundary of its former descending wedge, staying above the 0.382 Fibonacci retracement level at $2.365. This successful retest keeps the breakout narrative alive, but the next challenge looms large.
To unlock further upside, bulls must push XRP above the $2.54 resistance, which aligns with the 0.618 Fibonacci level. Failure to do so could see the price trapped in a narrow range, with the risk of a pullback to $2.25 or lower if support at $2.30 fails to hold. The coming sessions will be critical in determining whether XRP can build on its recent gains or slip back into consolidation.
Conclusion
Ripple’s XRP stands at a crossroads, buoyed by technical buy signals and a resilient price structure, yet hampered by declining network activity and mixed market signals. While the groundwork for a rebound is in place, the lack of decisive accumulation and fading on-chain engagement suggest that the rally may be running on borrowed time. If XRP can maintain support above $2.30 and break through the $2.54 barrier, momentum could quickly accelerate. Otherwise, the market may be in for a period of sideways movement as participants await clearer direction. In this environment, vigilance and adaptability will be key for traders navigating the next phase of XRP’s journey.
