- Whale clusters and wedge retest indicated that XRP may resume upside momentum.
- Weak on-chain metrics and a flat Funding Rate suggested mixed conviction.
Ripple [XRP] has triggered optimism among traders after flashing multiple TD Sequential buy signals on the hourly chart. Sentiment indicators echo this positive outlook, with both crowd and smart money showing bullish bias.
Additionally, XRP continues to trade above a crucial technical zone following a wedge breakout retest. At the time of writing, XRP was priced at $2.37, reflecting a modest 0.37% daily gain.
These converging signals have heightened expectations of a potential rebound, though broader metrics suggest that caution may still be warranted in the short term.
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.
