Key Takeaways
- XRP declined 15% from its March peak of $1.60 to approximately $1.36
- Price action remains beneath the $1.40 threshold and 100-hour Simple Moving Average
- Open Interest surged from $886 million to $946 million despite downward price movement
- Negative OI-weighted funding rate (-0.0086) indicates bearish positioning dominates
- Approximately $314 million in short positions concentrated between $1.375 and $1.405 could fuel a squeeze
XRP has encountered significant resistance after losing the $1.40 level. The digital asset posted a 26% gain from late February through mid-March, advancing from $1.27 on February 28th to reach $1.60 by March 17th. This upward momentum met strong resistance at $1.60, leading to a subsequent decline.
Currently trading near $1.36, XRP has retraced approximately 15% from its March high. After touching a recent bottom at $1.3358, the price has entered a consolidation phase. The asset is now positioned below both the 100-hourly Simple Moving Average and the 38.2% Fibonacci retracement level calculated from the recent downward movement.
Technical analysis reveals a descending trend line on the hourly timeframe, placing immediate resistance at $1.3750. For bulls to regain control, XRP must first overcome $1.3850 — corresponding to the 50% Fibonacci retracement level — before challenging the critical $1.40 resistance.
Rising Open Interest During Price Weakness
A notable development catching market observers’ attention is the increase in Open Interest amid declining prices. On March 25th, with XRP trading at $1.42, total Open Interest measured $886 million. Just one day later, as the price dropped to $1.36, Open Interest jumped to $946 million. Current figures show a slight retreat to approximately $933 million.
XRP: Price Down + Open Interest Up
Juicy. Stay safe friends. 🫡 pic.twitter.com/oR1qsa1VRq
— Maartunn (@JA_Maartun) March 26, 2026
CryptoQuant analyst JA Maartunn highlighted this divergence between price action and Open Interest metrics, describing the configuration as compelling while recommending careful monitoring.
The OI-weighted funding rate has fallen into negative territory at -0.0086. When funding rates turn negative, it signals that traders are paying premiums to maintain short positions, confirming that bearish sentiment currently prevails.
Potential for Forced Liquidations
Coinglass liquidation data reveals approximately $70 million in short positions clustered at $1.375, with an additional $44.98 million positioned near $1.3785. Collectively, around $314 million in short positions are stacked between the $1.375 and $1.405 price levels.
Should XRP rally into this range, cascading liquidations of short positions could create forced buying pressure, potentially amplifying upward momentum. This phenomenon is known as a short squeeze.
#XRP – The Monthly RSI:
The 1, 2 and 3 Formation: Do you see it.
Structure > Noise pic.twitter.com/12eREPzVIo
— EGRAG CRYPTO (@egragcrypto) March 25, 2026
Traders are watching two possible outcomes. The first scenario involves XRP remaining below $1.37, allowing sellers to maintain dominance and potentially driving prices toward $1.3350 or $1.3220. Breaking below those levels would bring $1.30 into focus as the next significant support zone.
Alternatively, if XRP manages to push into the $1.375–$1.405 range, it could trigger substantial short liquidations. Such an event might rapidly propel prices toward $1.4120 and potentially higher levels.
As of this analysis, XRP is trading around $1.36, maintaining position above the $1.35 support threshold, while Open Interest stands at roughly $933 million.
