The XRP price chart appears calm following an 8.8% decline last week, but this should not be mistaken for stability. After failing to break through the $3.50 resistance, XRP has been fluctuating between $3.00 and $3.20.

Furthermore, Open Interest on Binance has reached an all-time high of $3.9 billion, indicating significant speculative activity. Here are the insights on XRP’s potential direction:

“This surge marks a clear influx of new capital, signaling strong speculative activity.” – CryptoQuant

Traders Are Betting Against XRP

Recent data from CoinGlass has revealed that short positions make up 50.77% of XRP Futures contracts, marginally surpassing long positions at 49.23%. The Long/Short Ratio being below 1.0 suggests a bearish tilt among traders.

CoinGlass Data Source: CryptoQuant

With more traders opting to short XRP, excessive negative sentiment can create conditions ripe for a short squeeze, particularly if the price experiences unexpected upward movements.

Additionally, XRP’s exchange netflows have been positive for the past two days, with $1.28 million in recorded inflows, indicating that holders are transferring their tokens to exchanges.

Will XRP Break Higher or Drop to $2.90?

Analysts at 99Bitcoins are divided on the outlook for XRP. Some believe a bear trap might be forming, where the piling up of short positions could backfire. If capital continues to pour into derivatives markets, it may prompt widespread liquidations of short positions, pushing XRP above $3.20 and possibly towards $3.50.

Conversely, should the inflows persist and bullish momentum falter, XRP may plummet to around $2.90, especially if long positions are liquidated.

Technical Analyst Predicts “Mega Bullish Wave”

Overall, XRP appears to possess more bullish sentiment currently. Here are some key indicators:

• A bullish pennant breakout on the BTC chart suggests potential gains between 21% and 275%.
• The Visible Range Volume Profile (VRVP) indicates low resistance above the 5.75% mark, which could facilitate upward movement if it breaks through critical levels.

At present, XRP is trading at $3.25, showing hourly gains of 1.66%. The trajectory it takes will depend heavily on forthcoming macroeconomic developments, such as Trump-EU trade deals, potential Fed rate cuts, and earnings from tech companies.

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