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Despite this decline, data shows a surprising trend: traders are opening more long positions on XRP through perpetual futures contracts. This optimistic outlook seems to be affecting most of the investors, as they gear up to prepare for a potential bull run
XRP is trading at around $2.21, marking a 10% drop from its recent high of $2.33 in late April. Despite this decline, data shows a surprising trend: traders are opening more long positions on XRP through perpetual futures contracts. This indicates that many in the market believe the price of XRP will bounce back soon.
Several reasons have contributed to XRP’s recent dip in value:
Technical analysis shows patterns such as a "descending triangle," which often suggests that a price drop is coming. This kind of chart pattern tends to reflect a weakening buying interest and stronger selling pressure.
The XRP Ledger has seen a decline in daily active addresses. This means fewer people are using or moving XRP around, which can suggest a drop in interest or utility at the moment.
Broader economic issues, such as inflation concerns and shifts in U.S. monetary policy, have also put pressure on riskier assets like cryptocurrencies. When investors grow uncertain, they often pull back from speculative assets like XRP.
While the price has fallen, a large number of traders are betting that it won’t stay low for long. On various cryptocurrency exchanges that offer perpetual futures—financial instruments that allow traders to bet on price movements without owning the actual asset—data shows a strong rise in long positions.
There are now three times more long positions than short ones on XRP perpetual contracts. This is the widest margin between longs and shorts seen in over a month. A long position means the trader expects the price to go up.
This bullish sentiment may be influenced by new XRP futures trading options recently introduced by major cryptocurrency exchanges. With more tools to trade XRP, traders have more confidence to enter the market and make strategic bets.
At the moment, XRP is moving within a narrow range, bouncing between $2.10 and $2.22. Key price levels to watch include:
Support levels: $2.08 and $1.89
These are the prices where buyers might step in to stop further losses.
Resistance level: $2.26
This is a price at which XRP may face selling pressure that could block it from rising further.
Another important indicator, the Relative Strength Index (RSI), is nearing the "oversold" zone. When this happens, it means the price may have dropped too much, too quickly, and a bounce-back could happen if new buyers come in.
The spike in long positions shows that many traders are optimistic, but the overall picture is mixed.
Some prediction markets show that a number of participants believe XRP will continue trading below $2.19 by the end of May. These platforms allow users to bet on the outcomes of future events, and in this case, many are not expecting a quick recovery.
The Federal Reserve's upcoming economic decisions could also influence XRP’s price. If interest rates rise or if the market sees tighter monetary policy, cryptocurrencies might struggle to gain traction, at least in the short term.
In the long run, opinions on XRP’s price potential vary widely:
Some analysts expect XRP could reach $3.90 by the end of 2026, especially if its adoption increases and legal or regulatory issues ease.
More bullish predictions go as far as $20 by 2030, based on XRP becoming a key asset for cross-border payments and financial institutions.
These forecasts depend on several things going well for XRP, including continued growth in user adoption, positive legal developments, and broader market support for cryptocurrency.
XRP’s 10% decline in early May 2025 has triggered mixed reactions. On one hand, technical patterns and falling user activity suggest caution. On the other hand, a sharp rise in long positions on perpetual futures shows that many traders are hopeful about a rebound.
The introduction of new XRP trading products and ongoing confidence from a segment of the trading community suggest the dip may be temporary. However, external factors such as global economic conditions and interest rate decisions will continue to play a major role in determining XRP’s direction in the coming weeks.
