Key Notes
- On-chain data shows bearish trends for XRP, with futures open interest dropping 4.21% to $3.9B, down from its January peak of $7.8B.
- Negative funding rates and over $10.41 million in liquidations, mostly from long positions, further reflect bearish sentiment.
- Analysts warn that losing the $2 support level could drive the XRP price all the way down to $1.2
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XRP price has dropped 4.8% in the last 24 hours to $2.35 amid heavy selling pressure from the bears as bulls fail to take it past the $2.50 resistance despite the Ripple lawsuit clearance this week. The daily selling volume is up by 15%, which shows that the selling pressure from the bulls is high.
A combination of fundamental and technical factors is behind today’s XRP price drop. This includes failure to ride despite Ripple dropping the cross appeal against US SEC, a bearish technical setup, as well as a lack of enthusiasm among traders.
On-chain Metrics Show Weakness for XRP Price
As the XRP price heads downwards, on-chain metrics also show weakness for the Ripple cryptocurrency. According to Coinglass data, the XRP futures open interest has dropped by 4.21% today while slipping under $3.9 billion.
The open interest (OI) currently stands at $3.9 billion, marking a 50% drop from its January 18 peak of $7.8 billion. This decline in OI indicates reduced capital inflows into the market, potentially intensifying price drops as buying pressure diminishes. Plus, the 24-hour liquidations have shot past $10.41 million, of which $9.87 million is in long liquidations.
On the other hand, the funding rate for the XRP perpetual futures market turned negative earlier today on March 27, dropping from 0.0088% to -0.0049%.
Negative funding rates occur when shorts (bets against the price) compensate longs to maintain their positions, reflecting bearish market sentiment. Without sufficient buyer intervention, this dynamic can lead to additional selling pressure, driving prices even lower.
Will XRP Drop Under $2?
As XRP price comes under the bearish grip, analysts are closely observing whether it can further lead to another 15% correction to its next critical support at $2.
Renowned crypto analyst Ali Martinez emphasized the importance of maintaining this level, signaling its significance in determining the token’s future price trajectory. If XRP loses the $2 support, it can crash all the way further to $1.2 levels.
$2 remains the most critical support level for $XRP! pic.twitter.com/odqtMeDOol
— Ali (@ali_charts) March 27, 2025
However, other market analysts have not lost hope and believe that this is just a momentary pullback before the Ripple cryptocurrency resumes its journey to fresh all-time highs, to $10 and beyond.
Crypto analyst Dark Defender has highlighted a bullish outlook for XRP, citing the formation of a “Bullish Rectangle Pattern.” According to the analyst, this consolidation phase is nearing its end, paving the way for a potential breakout. Dark Defender expressed optimism that the next price movement could propel XRP to new all-time highs.
Hi all, $XRP formed a great Bullish Rectangle Pattern ✅
This consolidation will be over very soon 🕜
The next leg will welcome new all-time highs.
Tick Tock!⏰
Have an excellent day! pic.twitter.com/l8SUqxvQTR
— Dark Defender (@DefendDark) March 27, 2025
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
