- XRP is eyeing a 25% breakout to $2.74, fueled by bullish technical patterns and growing institutional interest, including CME’s upcoming XRP futures launch.
- However, rising bearish pressure and long liquidations suggest caution as momentum weakens near key support levels.
Ripple’s XRP is at a pivotal moment, with bulls targeting a potential 25% breakout — but rising bearish sentiment could threaten the momentum. As of Friday, XRP trades at $2.18, slightly recovering from a dip to $2.11 after reaching a mid-week high of $2.30. While the price consolidates, technical patterns and institutional developments hint at significant movement ahead.
A bullish inverse head and shoulders pattern is forming, suggesting a possible breakout to $2.74. The neckline of this formation aligns with the 8-hour 100-day EMA at $2.15, which XRP has reclaimed as support. Traders are watching for a move above the 200 EMA at $2.22 — a key hurdle before targeting the $2.50 resistance level and, eventually, the $2.74 projection.
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Fueling the bullish case is the CME Group’s announcement of upcoming futures, slated to launch on May 19 pending regulatory approval. With both micro (2,500 XRP) and macro (50,000 XRP) contract options, this move expands institutional access to XRP exposure. Coinbase derivatives also rolled out XRP futures earlier this week, underscoring growing demand across investor classes.
However, not all signals are rosy. The Relative Strength Index (RSI) is retreating toward the midline at 55.98, hinting at weakening bullish momentum. A drop below the 50 mark could signal a deeper retracement toward the $2.00 support zone.
Moreover, liquidation data from Coinglass shows long traders are under pressure. Over the past 24 hours, $5.63 million in long positions were liquidated, compared to just $1.99 million in shorts. The disparity continues on the 4-hour chart, with long liquidations totaling $1.13 million versus only $3,430 in shorts.
Adding to the uncertainty, Open Interest (OI) dipped by 0.21% to $3.86 billion, reflecting a cautious market mood.
While the setup favors a bullish breakout, XRP traders should remain wary of growing bearish undercurrents. A decisive move above $2.22 could ignite the rally, but failure to hold current support levels might shift momentum in favor of the bears.