XRP sees sharp rise in futures volume but bearish RSI signals further downside risk
XRP has seen a dramatic 130% surge in futures volume
XRP has experienced a tough week, with a range of market pressures causing notable declines in both price action and wallet activity. Despite a short-term recovery from a recent 3-week low, XRP's longer-term outlook appears increasingly fragile.
From a price perspective, XRP has had a turbulent journey, briefly hitting a 3-week low of $1.96 before recovering to $2.10, marking a 7% rebound. Bulls have shown some conviction at the $2 psychological level, which is now acting as a key near-term support zone. However, despite the price recovery, technical indicators suggest that further downside risk remains. The daily, 4-hour, and 1-hour RSI are all currently in bearish territory, pointing to a potential breakdown through the $2 support level.
Amid this price volatility, XRP has seen a dramatic 130% surge in futures volume, reflecting heightened market interest and increased trading activity. This surge in futures volume suggests that traders are actively positioning themselves amid growing uncertainty. However, despite the increase in futures volume, XRP’s open interest has declined by 1.42%, which could indicate that traders are cautious and less confident about the sustainability of the price recovery.
Traders focus on $2 and $1.9 support zones as XRP price recovery stalls
Given the current technical setup, the $2 level is likely to be tested once again, and if it fails to hold, the next significant support lies around the $1.9 level, which has previously acted as a key floor. XRP's performance in the coming days will hinge on whether bulls can defend this critical support zone, or whether broader market corrections will lead to further declines. With volatility still high and XRP’s price trending lower, the outlook remains uncertain, and traders will be watching closely for any signs of stabilization or a breakdown.
XRP's price hit a three-week low after the announcement of Trump's tariff policy. Despite a surge in on-chain activity, the price struggled to break resistance and fell below $2.02.
