XRP Price Prediction: Is XRP going to $1?
- XRP loses crucial $2.00 support amid the weekend sell-off as technicals paint a grim picture.
- The rising number of active addresses, reaching 1.48 million, highlights strong fundamentals.
- Ripple whales buy the dip despite weak micro factors like a dropping RSI and a sell signal from the MACD.
Ripple (XRP) is trading at $1.80 during the late Asian session on Monday, after correcting 15% in the last 24 hours and bringing the cumulative seven-day decline to 14%. Global markets are in turmoil amid United States (US) President Donald Trump's push to close the trade deficit. Trump insists he will be open to making a deal, but only after closing the trade deficit. As uncertainty in global markets continues, investors in risk assets like XRP must brace for more pain before relief.
XRP whales buy the dip amid crypto market mayhem
XRP faces increasing selling pressure, which was made worse by Trump’s reciprocal tariffs on April 2. Speaking to reporters over the weekend, the President insisted that tariffs are here to stay until the US solves the apparent trade deficit. Global markets, including stocks and crypto, sank deeper in the red on Sunday, with Bitcoin and Ethereum correcting to trade at $78,400 and $1,576, respectively, on Monday.
Meanwhile, instead of panicking, XRP whales are scooping the discounted tokens and increasing their holdings. Santiment’s data reveals a significant increase in the number of coins held by addresses holding between 100,000 and 1 million tokens, from 5.189% to 5.267% of the total supply. Investors with between 10 million and 100 million XRP also increased their exposure and currently account for 3.406% of the total supply from 3.046%.
XRP supply distribution | Source: Santiment
XRP’s network activity has also experienced a bump, with active addresses in the last 30 days rising to 82,000 from 78,811 posted on March 7. A spike in the active addresses metric suggests that more users or entities interact with the network and that adoption is growing, translating to higher volumes or an increase in the use of decentralised applications (dApps).
XRP Active Addresses | Source: Santiment
How low can XRP go? Exploring technical indicators
XRP finally broke the descending triangle pattern, which forecasted a 68% drop in our Ripple analysis last week. With support at $2.00 out of the way, sellers can push their agenda, inflicting more pain on holders.
Technical indicators like the Relative Strength Index (RSI) continue plummeting, targeting the oversold region. If this trend continues, XRP could retest the $1.5 and $1 areas, respectively, not to mention the triangle projection to $0.67.
The Moving Average Convergence Divergence (MACD) sustains a sell signal in the 12-hour timeframe, calling on traders to focus on shorting XRP and adding downward pressure.
XRP/USDT 12-hour chart
According to Coinglass data, XRP derivatives’ open interest has plunged further in the last 24 hours to $3.07 billion, indicating a 16% drop. Liquidations in the same period hit $38.33 million, comprising $34.63 million in long and $3.70 in short positions.
XRP open interest | Source: Coinglass
The onslaught could continue this week as global markets digest the impact of Trump’s tariffs. Conversely, growing interest from whales could absorb the selling pressure, allowing XRP to uphold higher support at $1.8 and accentuate a major recovery above $2.
Open Interest, funding rate FAQs
Higher Open Interest is associated with higher liquidity and new capital inflow to the market. This is considered the equivalent of increase in efficiency and the ongoing trend continues. When Open Interest decreases, it is considered a sign of liquidation in the market, investors are leaving and the overall demand for an asset is on a decline, fueling a bearish sentiment among investors.
Funding fees bridge the difference between spot prices and prices of futures contracts of an asset by increasing liquidation risks faced by traders. A consistently high and positive funding rate implies there is a bullish sentiment among market participants and there is an expectation of a price hike. A consistently negative funding rate for an asset implies a bearish sentiment, indicating that traders expect the cryptocurrency’s price to fall and a bearish trend reversal is likely to occur.
Author
John Isige
FXStreet
John Isige is a seasoned cryptocurrency journalist and markets analyst committed to delivering high-quality, actionable insights tailored to traders, investors, and crypto enthusiasts. He enjoys deep dives into emerging Web3 tren
