XRP price has dropped nearly 25% over the past month amid a broader market retracement coming on the back of Bitcoin (BTC), the bellwether falling below multiple key support levels, and investor caution amidst macro headwinds and geopolitical tensions. XRP futures open interest is down roughly 50% from what was seen earlier this year. XRP price remains 38% below its yearly highs.
On the daily chart, XRP price remains below the 50, 100, and 200-day moving averages, confirming a deteriorating technical structure and increasing the odds of extending its correction. This is especially true in the short term, as the 20-day moving average has crossed below the 50-day moving average. XRP price has formed a broadening wedge pattern on the daily chart. Adding to this, the Chaikin Money Flow index showed a negative reading as of the last check.
Nevertheless, bearish technicals currently seem to outweigh any glimmer of hope for a quick reversal, especially considering the broader risk-off sentiment permeating the global markets. Under these conditions, XRP price could be positioned for a potential drop to $1.17, about 25% below current levels, where it will touch the lower trendline of the pattern before any meaningful recovery. Futures liquidity may thin as traders scale back bets, increasing the risk of sharp volatility if demand wanes. CoinGlass data show futures open interest in XRP declined by 2.6% to $2.46 billion over the past day, nearly half of the $4.55 billion recorded in early January.
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