Ripple’s XRP: Volatility, Liquidity Swings, and the Risk of a Bigger Drop

• XRP Faces Volatility & Bearish Pressure – After peaking at $3.38, XRP pulled back to $2.50, with MACD signaling indecision and a possible drop below $2 if bearish momentum persists.
• Leverage is Rising, Increasing Market Risk – XRP’s Open Interest jumped 5.63%, indicating more leveraged bets, which could fuel sharp price swings in either direction.
• Key Support at $1.96 is Crucial – If XRP holds above $1.96, it could counter bearish sentiment, but breaking below it may trigger deeper declines as whales continue moving large amounts of XRP.

Ripple’s XRP has been riding a wave of volatility, with price action dancing around $2.50—a level packed with internal buy-side and sell-side liquidity points.

Price swings like these often signal major market moves, and XRP’s recent dip from its $3.38 peak is a prime example. After running buy-side liquidity near $3.00, the price pulled back sharply, now hovering around $2.50.

Momentum Weakens: Is XRP Losing Steam?

Technical indicators aren’t looking too bullish right now. The MACD is converging toward the zero line, a classic signal of market indecision. Recent downtrends and negative MACD shifts suggest that XRP could dip below $2, amplifying bearish momentum.

If $1.96—XRP’s internal sell-side liquidity level—breaks, expect sellers to push prices even lower. However, if XRP sustains above that level, it could counteract short-term bearish pressure, setting the stage for a rebound.

For now, market sentiment remains cautious, and if key support zones crumble, deeper declines could be in the cards.

Leverage is Piling Up—Will It Fuel a Drop?

Open Interest (OI) data offers a clue to XRP’s next move, and CryptoQuant analyst JA Maartunn warns that things could get shaky.

• XRP’s OI spiked by 5.63%, signaling growing leveraged bets.
• Higher open interest = greater risk, as leveraged positions magnify price swings.
• Historically, OI surges have led to sharp volatility—both upward and downward.

In fact, whale activity is already ramping up—just recently, a massive 60 million XRP transfer ($156M) moved between unknown wallets.

Final Thoughts: High-Risk, High-Reward Territory

As leverage stacks up, XRP is at a crossroads—a bullish breakout could trigger big gains, but if sentiment turns negative, leveraged bets could accelerate a brutal sell-off.

Traders riding this wave should stay sharp—XRP’s short-term outlook remains uncertain, and rapid price reversals are always on the table in a market fueled by speculation.