With Bitcoin price now aiming for a recovery above $80K, the altcoin market is pumping again. As a result, XRP is seeing increased market activity, with short-term traders now betting heavily around the $1.5 zone. Additionally, several on-chain indicators now point toward a breakout from the current consolidation. If this happens, the XRP price could be pushed toward January’s high.
XRP Faces Tough Battle Below $1.5
XRP has been experiencing intense volatility over the last few hours. The supply range at $1.5 is creating strong bearish waves, limiting any recovery since Monday. Data from Coinglass shows that XRP’s total liquidation has touched $17 million in the last 24 hours. Of this, buyers liquidated heavily after facing resistance above $1.5, amounting nearly $10.4 million.
Interestingly, the Senate Banking Committee’s May 14 review of the CLARITY Act could trigger short-term XRP price swings if it strengthens XRP’s status as a commodity. As XRP’s market volatility surged, it was accompanied by increasing open interest. CryptoQuant data shows XRP open interest rose to about $475 million, above the 30-day average of $441 million. Analysts say this signals stronger investor activity as XRP hovers below $1.5.
Also read: XRP Price Enters Key Resistance Zone—Can a Breakout From Here Trigger a New All-Time High Rally?
The percentage of XRP wallets holding unrealized profits also rose to about 65% on Thursday, compared to 63% the day before. XRP has also seen strong ETF activity over the last few days.
On Thursday, ETF inflow hit almost $19 million after a short slowdown the day before. Interest in these ETFs has remained solid overall, with total inflows increasing from $1.36 billion to $1.37 billion. At the same time, the total value of assets rose to an average of $1.25 billion, up from $1.14 billion. It creates a strong potential for XRP to charge toward $2.
What’s Next for XRP?
XRP price has been hovering within a tight range after facing multiple resistance at $1.5. However, it shows that buyers are still holding their positions, expecting the price to break higher. As of writing, XRP trades at $1.4, declining over 1.8% in the last 24 hours.
If XRP moves above the downtrend line, the XRP/USDT pair could climb to $1.6. Sellers will likely try hard to stop the price at that level because a move above it could signal the start of a new upward trend. If that happens, XRP could then rise further toward $2.
On the other hand, if the price falls below the moving averages, it would suggest that buyers are losing confidence. In that case, XRP could drop to around $1.25, where buyers may step in again.
The RSI level hovers below the midline at level 48. Though it suggests minor bearish control, buyers are actively defending the immediate SMA levels.
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