Trading at $2.34, XRP remains the 4th biggest crypto coin in the market with a market cap of $136 billion. Despite the intraday pullback, the last week remains quite bullish for XRP with a bounce back from the 200-day EMA.
XRP is aiming to challenge an overhead resistance trend line. Will this result in a price surge to the $4 psychological mark?
XRP Price Analysis
In the daily chart, the XRP price trend continues to form a right-angled ascending broadening wedge pattern. Despite the constant fluctuation, and nearly $2.14 support zone, XRP quickly bounces back from the 200-day EMA line.
With the recovery run challenging the closely packed 50-day and 100-day EMA lines, XRP trades at $2.3484. The intraday gain of 2.27% is gradually undermining the 4% pullback on Sunday.
With a bullish start to the week, XRP is aiming for a new bull cycle within the wedge pattern.
XRP Price Targets
As per the trend-based Fibonacci level, the bullish recovery in XRP is likely to challenge the 23.6% level at $3.35. This marks an upside potential of more than 40%.
On the flip side, the crucial support remains at $1.88, highlighting a downside risk of more than 20%.
Analyst Warns Downside Risk
As XRP stands at a crucial crossroads, Ali Martinez, a crypto analyst, warns of an added downside risk in XRP, based on his analysis. According to his latest tweet, the price action analysis highlights a head-and-shoulder pattern in the daily chart.
$XRP is shaping up a head-and-shoulders on the weekly chart. It spotlights the $2 support. Holding it is crucial. pic.twitter.com/icoVFwbBB9
— Ali (@ali_charts) March 17, 2025
The neckline is slightly above the $2.00 psychological level and warns of a potential breakdown if XRP fails to hold the $2.00 support level.
XRP Futures at Risk Amid Declining Open Interest
Amid the increased volatility, the trade of participation in the XRP futures is on a declining trend. With a 3.6% drop in open interest, it currently stands at $3.18 billion.
Furthermore, the long-to-short ratio is gradually turning bearish and is currently at 0.9585. This highlights a gradual increase in the number of bearish positions against bullish players. Finally, the over-weighted funding rate is down at 0.0008% from the recent peak of 0.0059%.
