XRP Flashes Rare Buy Signal—Here’s What Comes Next

Ripple’s XRP just triggered a technical buy indicator not seen since its 2021 bull run. Traders are circling, but seasoned crypto vets know these signals cut both ways.

Key levels to watch: A clean break above $0.55 could confirm momentum, while failure to hold $0.48 might trigger another ’institutional-grade’ selloff—Wall Street’s polite term for dumping bags on retail.

Remember: Every ’unmissable’ crypto signal looks obvious in hindsight—usually right before the market humbles overeager bulls.

Whales and leverage clusters gather near the $2.38 zone

The liquidation heatmap reveals dense clusters of short liquidations just above the current price, indicating that XRP could trigger a short squeeze if upward momentum persists.

The $2.40 to $2.45 range holds significant Open Interest (OI) across Binance, OKX, and Bybit, suggesting potential price acceleration if these levels are breached.

Meanwhile, long liquidation pressure remains relatively low below $2.30, offering some support against an immediate downturn.

Source: Coinglass

Despite the positive sentiment, the OI-Weighted Funding Rate remained nearly flat at 0.0017%. This neutral reading implies that neither longs nor shorts dominate the market. 

Historically, such readings accompany consolidation phases where price action tightens before a major breakout or breakdown. This also aligns with the stability in OI trends over recent sessions. 

Mixed signals from exchange flows cloud short-term outlook

On the 18th of May, XRP recorded $42.74 million in inflows against $37.76 million in outflows across major exchanges. 

While this suggests more capital entered than exited, the difference is not large enough to confirm strong accumulation. 

This mixed FLOW paints a picture of indecisiveness among market participants. Some may be repositioning for a bounce following recent price action, while others could be taking profits. 

Source: Coinglass

XRP network activity sees a notable decline despite price stability

On-chain metrics reveal a concerning drop in engagement. At the time of writing, Daily Active Addresses dropped to 8,706 while Transaction Count fell to 123.16K. 

These declines follow a previously higher period of activity seen in March and April. This downward shift suggests a waning interest from retail users and lower utility on the XRP ledger. 

Despite the stable price action, the decreasing user participation may reflect fading momentum or reduced speculative interest, which could hinder sustained growth unless reversed soon.

Source: Santiment

Breakout retest holds: Can XRP extend its climb?

Technically, XRP has successfully retested the upper boundary of a descending wedge, maintaining structure above the 0.382 Fibonacci level ($2.365). 

This price action confirms the wedge breakout remains intact. However, to unlock further upside, bulls must reclaim resistance NEAR $2.542, aligning with the 0.618 Fib level. 

Failure to breach this could trap the price within a narrow range.

Therefore, the next few sessions are critical, as maintaining support above $2.30 could validate continuation, while rejection could invite downside retests of $2.25 or lower.

Source: TradingView

Conclusively, XRP shows early signs of recovery driven by bullish sentiment, buy signals, and a technical breakout retest. 

However, fading network activity and indecisive funding metrics suggest limited fuel for a sustained rally.

If XRP holds above $2.30 and breaks $2.54 resistance, momentum could accelerate; otherwise, short-term consolidation remains likely.