XRP dips below $3 as CME futures open interest hits record high
XRP price plunged below the key $3 support level, entering bear market territory after a 20% drop from its yearly high. At the same time, CME’s XRP futures open interest surged to a record 7,197 contracts, signaling strong demand from US institutional investors. Since launching in August, leveraged XRP ETFs XXRP and UXRP have attracted over $500 million in combined assets. Meanwhile, Ripple USD (RLUSD) stablecoin assets rose from zero to $687 million, and Gemini unveiled an XRP rewards credit card. On the technical front, XRP price is forming a falling wedge and cup-and-handle pattern above its 100-day EMA, suggesting a potential rebound to $3.66 in the short term and $5.20 in the medium term. Traders should watch these catalysts for a buying opportunity on the dip.
Bullish
The sharp drop below $3 triggered stop-loss orders, intensifying selling pressure in the short term. However, the record CME futures open interest signals renewed institutional appetite, historically preceding sustained recoveries in altcoins. Significant inflows into XXRP and UXRP ETFs reinforce this trend, while the rapid growth of Ripple USD (RLUSD) and the launch of an XRP rewards credit card add fundamental support. Technical indicators further bolster a bullish outlook: the falling wedge and cup-and-handle patterns above the 100-day EMA have consistently led to breakouts in past cycles. In similar events—such as previous XRP dips in 2021 and early 2023—high futures demand and ETF interest preceded strong rebounds. Traders can expect short-term volatility but a medium-term uptrend, with targets at $3.66 and $5.20, making this a potential buy-the-dip scenario.