XRP enters danger zone: XRP price falls below $1.50 while open interest surges 12% – what will happen next?

XRP price prediction: XRP is moving deeper into a zone of uncertainty, where falling prices and rising derivatives activity are telling very different stories about market conviction.

XRP price trend turns bearish as lower highs continue

On the price chart, the trend remains clearly bearish. XRP continues to print lower highs and has slid steadily from above $3.50 toward the $1.50 zone. Normally, weakening prices would be accompanied by fading participation, but this time derivatives activity has increased, creating a noticeable divergence that now defines current positioning.

Why XRP price is falling despite rising market activity: Open Interest jumps 12% as XRP price slides

Crypto analyst Maartun noted that Open Interest climbed by roughly 12% over the past 24 hours, as per an AMBCrypto report. Rather than arriving in a single surge, the increase built steadily over multiple sessions, particularly during relief rallies seen in November and early January. This growth also lined up with increased ETF desk activity and heavier hedging flows, pointing to institutional involvement alongside more directional trades.


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Rising leverage raises volatility risks for XRP

However, rising Open Interest during a price decline often points to leverage entering the market rather than strong accumulation. In this case, the expansion likely reflects speculative positioning, either from traders adding short exposure or late long attempts to buy dips. Liquidation clusters and sell alerts forming near local highs support that interpretation, suggesting that leverage, not spot demand, is driving the increase.

As leverage builds while price continues to compress, market stability tends to weaken. Historically, this type of setup often leads to a rise in volatility rather than a swift reversal.

The derivatives market adds further evidence of mounting pressure. Funding rates, which had hovered near neutral, have recently slipped slightly into negative territory. This indicates that shorts are paying longs, a sign of growing bearish crowding rather than balanced positioning. At the same time, Open Interest–weighted funding has tightened as XRP declined from the $3.00 region toward $1.50, reinforcing the view that leverage is behind the move rather than spot selling.

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Long/short ratio shows sellers firmly in control

The long/short ratio reinforces this picture. Across several timeframes, sellers remain in control, with taker sell volume consistently outweighing buy pressure as price trends lower. This reflects clear directional conviction instead of random or low-confidence trading.

XRP liquidation zones reveal squeeze risk on both sides

Liquidation data highlights how fragile the structure has become. Heatmap ladders show heavy clusters between $1.35 and $1.45 above the current price, while deeper long liquidations are positioned between $1.18 and $1.22 below. This stacked setup leaves XRP vulnerable in either direction. A push higher could trigger a short squeeze, while continued weakness risks cascading liquidations among long positions. The market remains squeeze-prone rather than settled.

XRP Price Outlook: Key resistance at $1.44 could decide XRP’s next move

From a technical standpoint, XRP is still trading in a clear downtrend as it approaches key support. The price recently tested the $1.15 swing low, which aligns with the 100% Fibonacci retracement, where short-term buying briefly appeared. That bounce carried XRP toward $1.29, but momentum stayed weak and the broader bearish structure remained intact.

Above current levels, $1.44 stands as former support turned resistance, reinforced by the 78.6% retracement near $1.39. A daily move back above this area would help ease downside pressure and allow price to rotate toward the 50% retracement near $1.73. However, a failure to hold $1.15 on a daily closing basis would likely weaken market confidence further, leaving XRP exposed to a deeper slide toward the psychological $1.00 level, as per the AMBCrypto report.

FAQs

Why is XRP price falling right now?

XRP is in a clear downtrend, printing lower highs as it slides from above $3.50 toward key support levels.

What does rising Open Interest usually indicate?

In falling markets, it often points to speculative positioning, such as shorts or late dip-buying longs.