Ripple (XRP) Movement and Potential Correction: What Crypto Investors Need to Watch Out for?

Updated

April 14, 2025

Gambar Ripple (XRP) Movement and Potential Correction: What Crypto Investors Need to Watch Out for?

Jakarta, Pintu News – Ripple , one of the most popular cryptocurrencies, recently recorded price movements that caught the attention of market participants. XRP managed to break the downward trend line that has persisted for the past six weeks. This trend line had previously been an area of strong resistance since early March.

While this breakout is considered an early signal of a trend shift, analysts warn that it doesn’t quite signal the end of XRP’s downward phase. The psychological level of IDR33,588 (equivalent to $2) has indeed turned into a support area, but the medium-term bearish trend is still quite strong.

Important Price Levels that Traders and Investors Are Concerned About

In the latest technical analysis, XRP’s price structure on the daily timeframe still shows a bearish pattern. This is because the previous high of IDR37,455 (equivalent to $2.23) has not been convincingly broken. Therefore, crypto traders are advised to remain vigilant and not rush into buying.

The Relative Strength Index (RSI) indicator is indeed at the 54 level, indicating a slight boost in bullish momentum. However, the movement of the On Balance Volume (OBV) indicator is still showing a downward trend in trading volume, in line with the depressed price movement.

Other important resistance levels are around IDR41,438 (equivalent to $2.46) and IDR45,343 (equivalent to $2.7), based on Fibonacci retracement analysis. These levels are expected to be a challenge for XRP to move higher in the near future.

Also Read: Solana’s Whale Movement and Selling Pressure: What is the Impact on Crucial Support Levels?

Derivative Activity and Risk of XRP Price Correction

The increase in XRP price in the last 24 hours was also accompanied by a surge in open interest (OI) in the derivatives market by 6%. This OI value indicates an increase in open trading contracts. However, the concern is that the spike in OI was not followed by an increase in Cumulative Volume Delta (CVD) in the spot market.

This indicates that XRP’s price increase is mostly driven by activity in the derivatives market, rather than a real surge in demand in the spot crypto market. Such a situation has the potential to make the price rally short-lived.

In addition, data from the liquidation heatmap shows an accumulation of highly leveraged positions in the area around IDR37,883 (equivalent to $2.25). This opens up the possibility of a short squeeze, where traders’ short positions could be liquidated before the price finally experiences a bearish reversal.

Potential XRP Movement Amid Mixed Crypto Market Sentiment

In general, the analysis of the current price movement of Ripple (XRP) shows interesting but challenging dynamics for crypto market participants. Although the breakout of the downward trend line signals an early change in the trend, the potential for price correction is still quite large, especially if the buying momentum is unable to continue.

A possible short squeeze condition in the area of IDR37,883 (equivalent to $2.25) could push XRP prices up in the short term. However, if selling pressure dominates again, it is possible that the price of XRP will correct again towards the lower support level around IDR20,152 (equivalent to $1.2).

Conclusion

The current movement of Ripple (XRP) in the cryptocurrency market reflects market conditions that are sensitive to short-term sentiment and derivatives market dynamics. Crypto investors and traders need to pay attention to key price levels and technical indicators before making decisions. In the face of such volatility, caution and risk management remain important factors in investing in cryptocurrency.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Trading crypto carries high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying andselling Bitcoin and other crypto asset investments are the responsibility of the reader.