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Following a rocky few months, XRP is back in the spotlight of investor speculation. The cryptocurrency, which had shot up to close to US$3.20 in January 2025, has since suffered a sharp fall, losing over 30 percent of its value and pulling sentiment in the wider altcoin market down with it. But as happens so often in the volatile realm of crypto, sharp corrections are also fertile ground for new hope. Traders are now starting to flip bullish, betting big on a possible rebound, even as warning signs first start to flash.
Based on data provided by renowned crypto analyst Ali Martinez, around 70.33 percent of Binance traders are now long on XRP, a very clear indication of bullish conviction.
In contrast, only 29.67 percent are shorting the asset, driving the long/short ratio to 2.37. While such market confidence can spur powerful rallies, it also issues a warning: when the crowd gets too one-sided, precipitous corrections typically follow.
Backing this high-risk, high-reward situation is the XRP futures market, whose open interest has held strong at above US$3.4 billion. The statistics published on Coinglass happen to reveal that traders are still very much into it and seem to be just refusing to lower their exposure despite the recent price fluctuations. Oftentimes, such heavy open interest in times of volatility is usually followed by explosive, up-or-down action.
Technically, XRP showcases good short-term recovery signs. Having dipped to a crucial support level around US$1.65, the coin has started charting a rising channel, with upbeat RSI and MACD trend indicators suggesting possible upside. XRP currently trades at about US$1.86, just short of a crucial resistance level at US$1.80. If this price level's contention gets policed through, it may excite bulls again; otherwise, rejection will translate another rejection from this region, leading to retests of lower supports.
In short, the XRP situation is precarious. With building momentum surprise toward bulls on the sentiment front while technical indicators show mixed signals, the next decisive legs will most likely carve an avenue for the altcoin in the weeks to come. Traders would do good to monitor the key levels closely and be wary of any overblown bullish consensus in an environment where contrarian views are often rewarded.
