Ripple (XRP) price has been holding firm above the $2 level since November 2024, but that stability might soon be tested. According to a post by crypto analyst CasiTrades, XRP could be headed for a volatile move that might push the price lower before any possible breakout. With the current market setup, there’s a good chance that Ripple’s price action is approaching a crucial tipping point.
XRP has been consolidating for a while now. Price is still trading just above key support zones, but what’s happening beneath the surface tells a different story. CasiTrades noted that XRP is approaching the apex of a large consolidation pattern. While the price isn’t moving much, the funding rate is creeping up.
This combination is what he called dangerous. The funding rate, which represents the cost to maintain long positions in the futures market, is rising steadily. At the time of his post, XRP funding had already ticked up to 0.01% every 8 hours, despite no real breakout happening. If it rises to 0.02% or higher and price continues to stall, this could trigger something big and not in a good way for long traders.
What you'll learn 👉
Why Rising Funding Could Lead to a Drop
When funding goes up while price stays flat, it suggests that more traders are going long and expecting a breakout. But the problem is, if that breakout doesn’t happen soon, those positions become vulnerable. Algorithms and big players notice the growing open interest, and if there’s no price movement, they might force a flush. This is where volatility enters the picture.
In simple terms, a surge in funding without actual price gains can lead to a “liquidity sweep.” That means price could suddenly dip to shake out weak or unprotected long positions before a stronger move can happen. CasiTrades mentioned that if Ripple fails to hold above $2.25, the price could drop to $2.01, then $1.90, or even $1.55. These levels represent the most likely targets if the market takes a sharp turn downward.
Volatility Could Set the Stage for a Big Move
Even though this might sound bearish, it’s not all bad news for XRP holders. The same volatility that could cause a dip may also create the perfect conditions for a big upside breakout. CasiTrades believes this potential flush could generate the momentum needed for what he called a “wave 3 breakout.” That’s a powerful kind of move in market cycles that often leads to sustained rallies.
The bottom line is that XRP price is entering a critical phase. The current funding pattern, combined with stalled price action, points to rising tension in the market. Whether the next move is a short-term dip or the beginning of a larger breakout, it’s likely to shape Ripple’s price action for the rest of the summer.
Read Also: How Much Will 13,500 Kaspa (KAS) Tokens Be Worth by 2026?
What to Watch in the Coming Days
If XRP breaks below $2.25 and starts heading toward $2.01 or $1.90, it might be part of a broader setup to trap bears and reset the market. But if it manages to stay strong and funding levels stabilize, the breakout could happen without that downside sweep. Either way, traders and investors should keep a close eye on both the funding rate and XRP price action.
Ripple’s price is showing signs that something big is brewing. Whether it starts with a dip or goes straight to a rally, the market is likely preparing for a defining move.
Subscribe to our YouTube channel for daily crypto updates, market insights, and expert analysis.
We recommend eToro
Wide range of assets: cryptocurrencies alongside other investment products such as stocks and ETFs.
Copy trading: allows users to copy the trades of leading traders, for free.
User-friendly: eToro’s web-based platform and mobile app are user-friendly and easy to navigate.
