XRP, Is $1.40 the Limit?...Price 'Stalls' Despite $1.5 Billion Inflow

▲ XRP

XRP is unable to break the $1.40 barrier and remains confined in a box range due to strong technical resistance and a lack of speculative demand in the futures market.

Crypto media outlet CoinGape analyzed in a report on April 20 (local time) that XRP is blocked by the $1.40 resistance level. Experts cited solid technical resistance as the primary reason for price stagnation. XRP attempted to break through $1.40 multiple times on the 4-hour chart but failed each time. The current price remains below the 50-day exponential moving average (EMA) of $1.41. The 100-day EMA and 200-day EMA also form overhead resistance at $1.56 and $1.81, respectively.

The second reason is that the open interest in the derivatives market is very low compared to its past highs. Futures open interest recently rose to $2.47 billion. However, this figure is significantly insufficient compared to the $10.94 billion recorded last July. At that time, the XRP price surged to $3.66, attracting strong speculative capital. Currently, the prevailing assessment is that there is a lack of explosive buying energy to drive the market up.

Geopolitical risks are also a major factor suppressing investment sentiment. The conflict between the United States and Iran has lowered the preference for risk assets across the market. Major virtual assets, including Bitcoin (BTC), are showing mixed trends, and XRP is also failing to find direction. Institutional and individual investors' buying momentum is gradually recovering, but it is still insufficient to break through resistance. Due to unresolved market uncertainty, trading is conservative.

For the price to decisively break through $1.40, a large trading volume must accompany it. If it settles above the 50-day EMA of $1.41, a rally could extend to $1.73. After that, a genuine trend reversal would be possible only after overcoming the supply zone around the 200-day EMA of $1.81. Conversely, if it continues to fail to break the resistance, there is a high possibility of further short-term decline. Investors are closely monitoring price movements around key moving averages.

The Moving Average Convergence Divergence (MACD) index is currently sending positive signals. However, the overhead resistance remains strong, repeatedly thwarting recovery attempts. Investors are watching the increase in open interest and trading volume trends, looking for entry opportunities. Whether XRP settles above $1.40 by the end of April is expected to be a crucial key in determining its long-term price trajectory. Securing strong momentum to break out of the current box range is urgently needed.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*