XRP (XRP-USD) is clinging to the $2 level, and it might not hold much longer. If that floor breaks, analysts warn a 41% drop to $1.18 could come fast. The chart shows a bearish descending triangle, open interest is collapsing, and funding rates have flipped negative. The pressure is building, the bulls are fading, and one slip below $2 could set off a liquidation slide that doesn’t stop until XRP hits the next major support zone.
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Open Interest & Funding Rates Tank as Traders Exit
XRP’s open interest has cratered 36% in just over a month, down to $3.54 billion from $5.53 billion, according to CoinGlass. This data point is a bit of a warning flare, as fewer open positions mean less conviction, and historically, when interest vanishes, price follows.
Back in January, a 74% collapse in open interest paved the way for a 32% nosedive in price. It’s a pattern traders have seen before, and it rarely ends well for the bulls.
Additionally, funding rates have turned negative, dropping from 0.0057% to -0.0068% overnight. That’s a clear sign that short sellers are gaining ground and betting on lower prices. It’s no longer just about weakness, it’s about growing momentum in the opposite direction.
Descending Triangle Screams Breakdown Risk for XRP
XRP’s price action is painting a classic descending triangle on the daily chart. Flat support, lower highs, and building pressure. It’s a textbook setup for a breakdown. And if the price breaks through the $2 floor, the triangle’s full measured move drags the target down to $1.18, a staggering 41% fall from current levels.
The bulls are showing little strength at this support zone. And if they fail to defend it, the next leg down could arrive fast.
XRP’s Technical Indicators Are Heavily Bearish
Adding to the weight, TipRanks’ technical indicators are tilting heavily bearish. On the daily timeframe, most moving averages are flashing “Strong Sell,” with 11 bearish signals and just one bullish. The 20-day and 50-day exponential moving averages are both above XRP’s current price, reinforcing the downside setup. Only the MACD shows a faint glimmer of optimism, but not nearly enough to shift momentum. XRP isn’t just under pressure, TipRanks’ dashboard is lighting up red.
If XRP holds $2, there’s still hope. A breakout above $2.22, where the 50-day and 100-day moving averages meet, would cancel out the bearish pattern and open the door back to $3.00. But that’s a big “if” in a market tilting bearish by the hour.
Essentially, $2 is the make-or-break line. Lose it, and XRP doesn’t just stumble, it drops through the floor. At the time of writing, XRP is sitting at $2.00.
