- XRP has dropped 18.41% this month with user activity and futures interest sharply declining, yet the price remains stable above key support levels.
- Despite bearish signals, technical indicators like the Ichimoku Cloud suggest XRP could rally toward $4.50 if current momentum holds.
Despite a notable dip in activity, XRP is showing surprising strength in a cooling crypto market. Trading at $2.09, Ripple’s token has seen an 18.41% decline this month—but crucially, it’s holding above key support levels that could pave the way for a future breakout.
On-Chain and Derivatives Metrics Show Weakness
Since December, active XRP addresses have dropped by a staggering 80%, reflecting a major pullback in user engagement. Meanwhile, futures open interest is down nearly 70%, and leverage metrics indicate a retreat from high-risk positions. This suggests traders are playing it safe, especially with funding rates occasionally dipping into negative territory.
However, XRP’s price action tells a different story. While Ethereum has fallen by nearly 60% from its recent highs, XRP is down only 35% from its early 2025 peak of $3.40. This controlled decline signals underlying structural support that continues to buffer against sharp selloffs.
XRP Exchange Reserves Hit 2023 Lows
A bullish sign lies in XRP’s declining exchange reserves, which have now returned to levels last seen in July 2023. This indicates fewer tokens are readily available to be sold, limiting potential downside pressure. Market analysts interpret this as a sign of long-term investor confidence.
CryptoQuant’s EgyHash highlights this trend as a potential turning point. Combined with stable prices and technical support, it suggests XRP is preparing for something bigger.
Technicals Flash Green for a Breakout
Market analyst Dr. Cat points to a bullish Ichimoku Cloud pattern on the weekly chart. XRP continues to hover above the Kijun Sen line at $2.07—a vital support marker. More importantly, a bullish crossover is in place, with the Tenkan Sen rising above the Kijun Sen. The Chikou Span also remains above historical prices, signaling sustained buying interest.
The future Ichimoku cloud projects a thick upward slope into May, suggesting momentum is building. Dr. Cat believes this setup could fuel a push toward $4.50, a 115% gain from current levels.
While investor activity may be fading, XRP is far from out. Its ability to stay afloat amid bearish signals is no accident. With exchange reserves low and bullish technical indicators lining up, XRP bulls may be quietly preparing for their next move. If support holds and sentiment shifts, the path to $4.50 could become reality sooner than expected.
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