Is XRP price going to crash again?
Tuesday, 25 March 2025 ()
XRP (XRP) price has recovered by almost 7% in the last 10 days, led by a crypto market rebound and the end of Ripple’s long-running legal battle with the US Securities and Exchange Commission (SEC).
However, several key support levels are at risk of being tested as onchain data suggests lackluster buying activity.
XRP/USD daily chart. Source: Cointelegraph/TradingView
**XRP futures markets lean bearish**
XRP price is currently trading 30% below its multi-year high of $3.40. When prices were at a similar level in November 2024, high spot market bids quickly pushed the price past the $3 mark.
However, XRP‘s spot and perpetual markets were subdued over the past two weeks.
Key takeaways:
· Cumulative open interest (OI) in perpetual futures across major exchanges has been stuck below $4 billion since March 4.
· This is way below the $7.86 billion peak reached on Jan. 18, just a day before the price hit the seven-year high of 3.40.
· XRP funding rates have been oscillating around zero over the last two weeks, remaining negative for most of the time.
· Negative funding rates mean shorts are paying fees to counterparties to keep their positions open, signaling bearish sentiment in the market.
XRP funding rates. Source: Velo
· XRP’s spot cumulative volume delta (CVD) — which measures the net capital inflows into the market — has remained negative over the last two weeks.
· The negative CVD indicates that selling volume has accumulated more than buying volume, potentially signaling a bearish trend.
XRP spot CVD. Source: Velo
· All these indicators, therefore, cast doubt on whether XRP price has the legs to rise higher in the near term.
**XRP whale activity muted**
XRP whale activity has been quiet over the past week, with no significant buying or selling, according to data from Santiment.
· Wallets with 1 million to 10 million XRP have seen their total holdings remain flat at around 5.8 billion tokens since March 15.
· This lack of movement from large holders can reduce market volatility, as whales often drive price swings with their trades.
· Without their influence, XRP’s price has remained rangebound, reflecting a market driven by smaller investors’ sentiment and broader market trends.
XRP wallets holding 1M to 10M tokens. Source: Santiment
· However, muted whale activity could also signal indecision or a wait-and-see approach, potentially keeping XRP in a consolidation phase.
· With no whale-driven momentum, XRP’s price will likely remain range-bound unless external catalysts emerge.
**XRP price levels to watch under $2.40**
XRP’s latest price recovery saw it reclaim key support levels, including the $2.40 psychological level.
*Related: **XRP, Solana lead altcoin ETP inflows as Ethereum slumps — CoinShares*
Traders are now focused on key areas below this level, which XRP might revisit if current support does not hold.
Notably:
· XRP’s first area of interest is between the March 18 low at $2.22 and the previous range low at $1.90 reached on March 11.
· XRP will potentially target the liquidity cluster inside this range if support at $2.40 is lost.
· An immediate reprieve for the bulls would be a sharp reversal from this range, which will indicate buying interest below $2.40.
· Otherwise, XRP could drop lower to retest the Feb. 3 low around $1.76.
· Note that the 200-day SMA sits just below this range, suggesting a potentially strong demand zone just above $1.75.
XRP/USD daily chart. Source: Cointelegraph/TradingView
“$XRP is in a consolidation phase with support around $2.35 and resistance at $2.50,” said crypto analyst Gemxbt, adding that 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.”
XRP/USD chart. Source: GemXBT
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
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