Ripple’s XRP has been consolidating below a crucial resistance level for over a month, leaving investors disheartened. Despite high expectations for a rally, the altcoin has failed to gain upward momentum, drives frustration among traders. This extended period of inactivity has eroded confidence, with many opting to step away from XRP as it struggles to display meaningful price growth.

$1 Billion Open Interest Wiped Out

In a dramatic turn of events, XRP Futures Open Interest dropped by $1 billion in the past 24 hours. Just a day earlier, Open Interest had climbed to $2.9 billion amid hopes of a rally. However, as those expectations dissipated, traders began pulling their funds, signaling a sharp decline in market enthusiasm.

This significant withdrawal underscores growing bearish sentiment among XRP holders. The reduced Open Interest also reflects uncertainty surrounding XRP’s ability to break through its current resistance levels. Compounding these concerns is the broader macro momentum, which appears to be faltering, further weighing on investor sentiment.

Bearish Signals Persist

Market indicators point to continued stagnation for XRP. The Price-Daily Active Address (DAA) Divergence has been flashing a sell signal, suggesting declining participation from investors. This bearish trend highlights waning enthusiasm, with traders more inclined to secure profits than bet on a price surge.

Over the past month, XRP has dropped 20%, yet it has managed to hold above the $2.00 support level. However, the altcoin remains under its crucial resistance at $2.73. If bearish conditions persist, XRP risks losing its $2.00 support, which could lead to increased selling pressure and further erosion of investor confidence.

A Glimmer of Hope?

Despite the bearish signals, some analysts maintain a bullish outlook for XRP. Notably, crypto analyst Dark Defender believes the altcoin is in a correction phase that could soon complete. According to his analysis, XRP is forming a bull flag pattern on the weekly chart, which suggests a potential breakout. He has identified key support levels at $2.03, $2.11, $2.13, and $2.17, while resistance lies at $2.22, $2.42, and $2.69.

Dark Defender projects that XRP could eventually target $8.67 once the correction is complete. However, he notes that XRP must first overcome its current resistance and regain momentum to confirm this bullish trajectory.

Another analyst, Egrag, has an even more ambitious forecast, predicting XRP could hit $15 by May 5, 2025. He believes that broader market conditions and Ripple’s continued advancements could play a pivotal role in driving this growth.

What’s Next for XRP?

The road ahead for XRP is fraught with challenges. To regain investor confidence, the altcoin must break above its $2.73 resistance level and establish a stronger bullish narrative. Broader market conditions, including Bitcoin’s performance, will likely influence XRP’s trajectory in the near term.

If bearish factors persist, XRP could test lower support levels, potentially revisiting $1.80 or even lower. However, if the correction phase completes as analysts suggest, the altcoin may embark on a significant rally, targeting higher price levels in the coming months.

For now, XRP remains a token to watch closely. Its ability to navigate these uncertain times will determine whether it becomes a leader in the next market cycle or continues to lag behind.