[Analysis] XRP Open Interest Hits 8-Week Low... "Potential to Reach $1.50"

Analysis suggests Ripple (XRP) could drop to $1.50.

On the 25th (local time), CoinTelegraph reported that "XRP has fallen 20% over the past two days, breaking below the asymmetric triangle pattern" and added that "considering recent XRP perpetual futures indicators, there's a possibility it could fall to as low as $1.50."

The outlet focused on the decrease in XRP's Open Interest (OI). CoinTelegraph noted that "looking at historical cases, when XRP's open interest significantly decreases, XRP price tends to fall sharply as well" and added that "when open interest decreased in early February (first circle), XRP plummeted 43% from $3.13 to $1.76." They further mentioned that "on the 25th, XRP's open interest recorded an 8-week low."

According to Coinglass data, XRP's open interest decreased by 20% from $3.63 billion the previous day to $2.93 billion. XRP's funding rate also shifted from 0.0077% the previous day to -0.0003% currently. This indicates increasing downward pressure on XRP.

Furthermore, considering the scale of XRP long position liquidations, they projected that XRP's decline would accelerate. The outlet stated that "when long positions are liquidated, traders are forced to sell XRP" and that "this selling pressure will accelerate XRP's decline." According to Coinglass data, XRP long position liquidations over the past 14 hours amounted to $57.6 million. Short position liquidations recorded $4.71 million.

Technical analysis also suggested a downward trend. The outlet reported that "yesterday, XRP broke below the ascending trendline of the asymmetric triangle pattern" and "also fell below the 100-day simple moving average support level ($2.41)." They added that "this is a strong bearish signal."

As of 11:15 PM, XRP is trading at $2.2539 on Binance's USDT market, down 8.79% from 24 hours ago.