The XRP price shows a shift in futures market positioning as short positions close, according to data shared by trader CW. This is indicated by declining open interest while the price holds near $1.32. Lower timeframe analysis reveals continued bearish structure, but a long-term chart study by JD shows the cryptocurrency remains in a multi-year symmetrical triangle, suggesting potential for a volatile breakout despite current pressures.
Recent XRP price movement indicates a shift in futures positioning as open interest declines while net position delta rises, based on data shared by trader CW. This pattern suggests traders are closing short positions after extended bearish pressure.
On Binance’s hourly chart, XRP rallied towards the $1.53-$1.55 zone around May 15 before retreating due to aggressive selling. From that point, the cryptocurrency showed bearishness with decreasing prices marked by lower lows and lower highs.
Between May 20 and May 23, open interest increased despite a falling XRP price, signaling short position accumulation. The subsequent significant drop in open interest while the price holds at $1.32 indicates bears are covering their positions rather than taking new ones.
While the short-term chart appears bearish, focus remains on long-term prospects from an analysis conducted by JD. The chart reveals a massive symmetrical triangle formation from the 2018 high, containing a falling wedge pattern.
For years, the XRP price has been compressed between decreasing resistance and increasing support levels, leading to lower volatility. Such price setups are generally associated with eventual volatile price movements when they conclude.
