๐ XRPโs Recent Surge
Ripple (XRP) gained significant attention with an 11% rally on January 11, hitting $2.60. Ripple CEO Brad Garlinghouseโs meeting with President-elect Donald Trump has further fueled its popularity among crypto investors.
๐ Bearish Outlook After Breakout
Since December 3, XRP has been forming a symmetrical triangle, a neutral pattern. While the recent breakout to $2.60 excited bulls, profit-taking and exhaustion have caused the token to drop to $2.46, signaling caution.
โ 3 Reasons Why XRP is Dropping Today
1๏ธโฃ Profit-taking after the double-digit rally and exhaustion is pulling XRP down by 1.76% today.
2๏ธโฃ XRP trades below the key $2.53 resistance, within a high-volume zone that skews the outlook bearish.
3๏ธโฃ A potential bull trap wiped $80M in short positions. If XRP drops below $2.44, $42M in long positions could be liquidated.
๐ Open Interest Spikes
XRPโs open interest has surged from $2B to $5B since late December, signaling increased speculative activity. However, without reclaiming $2.55, bears maintain the upper hand. A move above this level could trigger a rally to $3.15.
๐ Final Thoughts
XRPโs short-term outlook depends on breaking above $2.55. Until then, caution is advised as the market sentiment remains mixed.
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