- XRP price correction wobbling in a fixed range within falling wedge pattern, signaling a potential breakout nearby.
- Open interest tied to XRP futures contracts has surged 10% since last weekend, indicating a rise in speculative force in price.
- Online sentiment shifted further into negative territory across major crypto discussion platforms.
XRP, the native cryptocurrency of the XRP Ledger, dips 1% during Monday’s U.S. market hours to trade at $1.9. The selling pressure aligns with renewed bearish momentum in the crypto market as Bitcoin shows a failed attempt to breach $90,000. Amid the pullback, the social media sentiment surrounding the XRP has plunged to a deeper negative region, which historically coincided with price reversal. Will this altcoin reclaim $2 before the new year?
Rising Futures Bets Contrast With Flat XRP Price Action
Since last weekend, the XRP price showcased low volatility trading around the $1.9 region. The narrow range candle along with low volume accentuate no initiation from buyers or sellers to drive price.
Despite a sluggish price action, the social media platforms continued to dive into negative regions. Data from analytics platform Santiment shows a significant rise in bearish discussions in various online forums and networks, as compared to the usual levels.
Past patterns show that such increased levels of pessimistic chatter have often been followed by later increases in the value of the asset. Periods when community skepticism is at a maximum about potential gains have often been followed by greater probability of advances.
In addition, metrics monitoring futures contracts for XRP show a slight rise in total open positions. According to Coinglass data. figures increased from around $3.23 billion to $3.54 billion, which is a growth of 9% in this category.
This adjustment incorporates changes in trader commitments within the derivatives space. High open interest can indicate increasing participation from market players setting up for dynamic change in price.
While the price trades sideways, the recent surge in OI hints traders anticipate a strong move in price.
Falling Wedge Pattern Drive Steady Downtrend In XRP Price
In the last two weeks, the XRP price witnessed a bearish pullback from $2.17 to current trading price of $1.89, registering a 13% loss. Analyzed in the daily chart, this downswing shows a bear cycle within the formation of a falling wedge pattern.
The chart setup is characterized by two converging trendlines, which offers dynamic regression and support to market participants. Since October 1st, the coin price shows multiple reversals within this pattern, indicating its strong influence on price trajectory.
With sustained settings, the XRP price could plunge another 20% to test the pattern’s bottom trendline around $1.5. Until the pattern is intact, the coin price would prolong its correction trend. A steady decline in the daily exponential moving average (20, 50, 100, and 200) accentuates a strong negative sentiment in the market and multiple resistance bolstering bearish influence on price.
On the contrary if coin price could break above the overhead trendline, the buyers could regain their grip over this asset for a higher rally.
Also Read: JPMorgan Explores Crypto Trading for Institutional Clients: Report
