The price of XRP has been gaining momentum, trading at $2.40 on Monday, propelled by a broader bullish wave across the cryptocurrency market following Bitcoin’s (BTC) breakout above the $100,000 mark. Several key technical indicators are flashing buy signals, suggesting that XRP could extend its upward trajectory toward the $3.00 target—especially if open interest (OI) in derivatives markets recovers.
XRP Turns Bullish as Exchange Inflows Decline
XRP has broken above its long-term descending trendline resistance, signaling a shift in market sentiment. According to data from CryptoQuant, exchange inflows have dropped dramatically—from over 2 billion XRP to just 14.5 million—coinciding precisely with this upward price movement.
This reduction in exchange inflows typically indicates weakening selling pressure, as holders prefer to keep their tokens in personal wallets rather than deposit them on exchanges for immediate sale. When fewer coins flow into exchanges, it often reflects growing market conviction and accumulation behavior—both strong precursors to sustained price appreciation.
Technical Indicators Support Further Upside
On the daily chart, XRP has established a solid bullish structure backed by multiple technical confirmations. The Supertrend indicator recently flipped green—its first bullish confirmation since March—positioning beneath the current price and reinforcing the ongoing uptrend.
The Supertrend is a momentum-based tool that helps traders identify optimal entry and exit points. When the price trades above the Supertrend line, it signals bullish momentum. For context, in late November 2024, XRP crossed above this indicator, marking the beginning of a major rally that pushed the asset from around $0.50 to nearly $3.38 by mid-January.
With the Supertrend now supporting price action from below, the stage could be set for another breakout—this time with eyes on surpassing $3.00.
MACD and RSI Confirm Strong Momentum
Additional confirmation comes from the Moving Average Convergence Divergence (MACD) indicator, which shows a clear upward trajectory above the zero line. The MACD line (currently at 0.0557) is trading above the signal line (0.0318), indicating robust bullish momentum.
Moreover, the expanding green histogram underscores this short-term bullish outlook. This momentum is further validated by the Relative Strength Index (RSI), which stands at 61.77—firmly in neutral territory without entering overbought levels (typically above 70). This suggests there’s still room for upward movement before any overheating occurs.
Together, these indicators form a compelling case for continued gains, assuming broader market conditions remain favorable.
Open Interest Drop May Temper XRP’s Rally
Despite the positive technical picture, caution remains warranted due to developments in the derivatives market. Data from CoinGlass shows that open interest has declined by 2.21% to $6.64 billion, while trading volume dropped 27.24% to $5.74 billion.
Open interest represents the total number of outstanding derivative contracts—such as futures or options—that have not yet been settled. A declining OI suggests that traders are closing positions, which may reflect waning confidence or reduced interest in sustaining the current price trend.
👉 Learn how shifts in open interest can predict market reversals before they happen.
In the past 24 hours alone, long positions worth $8.85 million were liquidated, compared to only $762,000 in short liquidations. This brings total liquidations to $9.61 million—an indication of heightened volatility and potential profit-taking among leveraged traders.
While some level of long unwinding is normal after sharp rallies, an accelerating pace could slow down or even reverse XRP’s upward momentum, particularly if fear spreads among retail investors.
Why Liquidations Matter
Large-scale liquidations often occur when prices move rapidly against leveraged positions. As stop-loss levels are triggered, automated selling exacerbates downward pressure, sometimes leading to cascading effects. Although current liquidation levels are not alarmingly high, they serve as a warning sign: momentum-driven rallies can be fragile.
Traders aiming for a $3.00 breakout should monitor both volume and OI closely. A recovery in open interest—especially accompanied by rising volume—would signal renewed commitment from market participants and increase the likelihood of a sustained move higher.
Core Keywords and Market Outlook
Key factors currently influencing XRP’s price trajectory include exchange inflows, Supertrend indicator, MACD, RSI, open interest, XRP price prediction, bullish momentum, and derivative market trends. These elements collectively shape investor sentiment and technical direction.
Historically, periods of low exchange inflows combined with strengthening technical indicators have preceded significant rallies in XRP. The current setup mirrors earlier patterns seen in late 2024, suggesting that a move toward $3.00 is not only possible but plausible under sustained bullish conditions.
However, macroeconomic factors—such as Federal Reserve policy decisions and USD strength—also play a role in shaping risk appetite across digital assets. Any tightening cycle or stronger dollar could dampen speculative activity, including in altcoins like XRP.
👉 Stay ahead of macro trends affecting crypto with real-time market insights and analysis tools.
Frequently Asked Questions (FAQs)
Q: What does declining exchange inflow mean for XRP?
A: Lower inflows suggest investors are holding rather than selling, reducing immediate selling pressure and often preceding price increases.
Q: Is a drop in open interest always bearish?
A: Not necessarily. It can indicate profit-taking after a rally, but if accompanied by falling volume and weak price action, it may signal weakening momentum.
Q: How reliable is the Supertrend indicator for XRP trading?
A: The Supertrend has historically provided timely signals during major trend shifts in XRP, making it a valuable tool for identifying entries and exits.
Q: Can XRP reach $3.00 in 2025?
A: Technically, yes—if bullish momentum holds and open interest recovers. However, external factors like regulation and macroeconomic conditions will also influence outcomes.
Q: What causes large liquidations in crypto markets?
A: Sharp price movements against leveraged positions trigger automatic stop-losses, leading to forced closures and increased volatility.
Q: How do technical indicators like MACD and RSI help predict price moves?
A: MACD reveals momentum shifts and trend strength, while RSI identifies whether an asset is overbought or oversold—both essential for timing entries and exits.
With strong technical support and declining selling pressure, XRP appears well-positioned for further gains. However, traders should remain vigilant about derivatives activity and broader market dynamics to navigate potential volatility on the path to $3.00.