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XRP Drops by 10% Again as the Altcoin Struggles to Hold Gains

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XRP surged 30% yesterday after being included in the US crypto reserve. This pushed its price above $2.90 for the first time in a month. This massive rally ignited strong bullish momentum, but the altcoin slumped 10% a day later.

XRP is seeing notable correction today, suggesting that profit-taking is underway. Whether the price can regain bullish momentum or continue its retracement will depend on key resistance and support levels, with traders closely watching $2.75 on the upside and $2.52 on the downside.

XRP RSI Is Neutral After Reaching Overbought Levels

XRP saw a significant surge in momentum after being included in the US crypto reserve. Its price rallied 30%, pushing its Relative Strength Index (RSI) to a peak of 84.5.

The RSI, a widely used momentum oscillator, measures the speed and change of price movements on a scale of 0 to 100. Readings above 70 indicate that an asset is overbought and could be due for a pullback. Readings below 30 suggest oversold conditions and a potential buying opportunity.

XRP’s RSI reached 84.5 – its highest level since December 2, 2024 – signaling extreme bullish sentiment, often preceding a short-term correction.

XRP RSI. Source: TradingView.

Now sitting at 63, XRP’s RSI has cooled off from its overbought zone, reflecting the recent retracement in price. While a reading above 60 still suggests bullish momentum, the decline from extreme levels could indicate that buying pressure is waning.

If RSI continues to decline toward the neutral 50 zone, XRP could see further consolidation or even a deeper pullback.

However, if buyers step in again and push RSI back above 70, it could signal renewed strength and another potential attempt at higher price levels.

Ichimoku Cloud Shows the Bullish Setup Is Still Here, But This Could Change

XRP Ichimoku Cloud chart analysis shows that the price saw a sharp breakout above the cloud (Kumo) following its 30% surge after being included in the US crypto reserve.

This breakout confirmed a strong bullish move, with XRP moving well above both the Tenkan-sen (blue line) and Kijun-sen (red line), signaling short-term and medium-term trend strength.

The sharp spike pushed XRP into overextended territory. However, as seen in the last few candles, a pullback has started, bringing the price closer to the Kijun-sen.

XRP Ichimoku Cloud.
XRP Ichimoku Cloud. Source: TradingView.

This suggests that while the uptrend remains intact, the market is reassessing its recent gains, and XRP is testing key short-term support.

If the price holds above the Kijun-sen, XRP price could consolidate before making another attempt at higher resistance levels.

However, if the correction deepens and XRP falls back toward the cloud, it could indicate a loss of momentum. The future cloud (Senkou Span A and B) remains bullish but with some flattening. That indicates that the market is at a pivotal point.

XRP Price Can Have a Hard Time to Reach $3

XRP surged to nearly $2.95 following its inclusion in the US crypto reserve, marking a sharp bullish move.

However, after this rapid climb, the price has started to correct in the last few hours, suggesting that some traders are taking profits.

The technical outlook now depends on whether the uptrend can regain strength. If buying pressure returns, XRP could test the $2.75 resistance again. A breakout above this level could see it retesting $2.96, which acted as a barrier during yesterday’s rally.

A successful move past this resistance would open the door to a push toward $3.15, marking the first time XRP has traded above $3 since February 1. The SEC dropping the case against XRP could be a potential drive for that.

XRP Price Analysis.
XRP Price Analysis. Source: TradingView.

On the downside, if the correction continues and selling pressure increases, XRP price could find support at $2.52. A breakdown below this level would put the next key support at $2.36 in focus. Further declines could potentially drive the price toward $2.15 and $2.06.

This could be driven if more questions about the asset being included in the US crypto reserve start to emerge. Harrison Seletsky, director of business development at digital identity platform SPACE ID, told BeInCrypto that these assets are odd choices to the reserve:

“I’m certainly surprised that US President Donald Trump has chosen to announce a full-blown crypto strategic reserve, rather than just a Bitcoin strategic reserve, as everyone had been expecting. Beyond that, the choice of assets is also unusual. ETH and SOL make sense, given their strong and growing developer activity. But it’s not clear to me why XRP and ADA were included at all, considering they are virtually ghost chains compared to Ethereum and Solana. Indeed, the total value locked (TVL) and stablecoin capabilities on XRPL and Cardano are tiny compared to other ecosystem players – $80 million and $460 million, respectively. In my eyes, it somewhat delegitimizes the whole idea of crypto reserve assets like industry mainstays Bitcoin, Ether and Solana,” Harrison Seletsky told BeInCrypto.

If bearish momentum strengthens significantly, XRP could fall below the psychological $2 mark, with $1.77 emerging as the next major support level.

Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.



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BTC Futures Show Bullish Sentiment, Options Traders Cautious

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After a surge in Bitcoin spot ETF inflows on April 2, yesterday’s market action painted a different picture as institutional investors began offloading BTC holdings.

Despite this retreat, futures traders remain confident, with open interest climbing and funding rates staying positive. However, the options market tells a different story, with traders showing less conviction in sustained upward momentum. As a key batch of BTC options nears expiration, all eyes are on how the market will respond to this divergence.

BTC Spot ETFs See $99.86 Million Outflow as Institutional Confidence Wavers

Institutional investors withdrew liquidity from BTC spot ETFs yesterday, resulting in a net outflow of $99.86 million.

Total Bitcoin Spot ETF Net Inflow.
Total Bitcoin Spot ETF Net Inflow. Source: SosoValue

This abrupt shift followed April 2’s $767 million net inflow, which ended a three-day streak of outflows. It signaled a brief return of institutional confidence before momentum quickly reversed.

Grayscale’s ETF GBTC saw the highest amount of fund exits, with a daily net outflow of $60.20 million, bringing its net assets under management to $22.60 billion.

However, BlackRock’s ETF IBIT stood out, witnessing a daily net inflow of $65.25 million. At press time, Bitcoin Spot ETFs have a total net asset value of $92.18 billion, plummeting 5% over the past 24 hours.  

Bitcoin Derivatives Split as Traders Bet on Both Sides of the Market

Meanwhile, the derivatives market remains split—Bitcoin futures traders are leaning bullish, backed by rising open interest and positive funding rates. In contrast, options traders appear more hesitant, signaling uncertainty in the market’s next move.

At press time, Bitcoin futures open is $52.63 billion, up 2% over the past day. The coin’s funding rate remains positive and currently stands at 0.0084%.

BTC Futures Open Interest.
BTC Futures Open Interest. Source: Coinglass

Notably, amid the broader market dip, BTC’s price has noted a minor 0.34% decline during the review period.

When BTC’s price declines while its futures open interest rises and funding rates remain positive, it suggests that traders are increasing leveraged positions despite the price drop. The positive funding rate indicates that long positions remain dominant, meaning traders expect a rebound. 

However, caution is advised. If BTC’s price continues to fall, it could trigger long liquidations as overleveraged positions get squeezed.

In contrast, the options market tells a different story, with traders showing less conviction in sustained upward momentum. This is evident from the high demand for put options. 

According to Deribit, the notional value of BTC options expiring today is $2.17 billion, with a put-to-call ratio of 1.24. This confirms the prevalence of sales options among market participants. 

Expiring Bitcoin Options.
Expiring Bitcoin Options. Source: Deribit

This divide between futures and options traders suggests a tug-of-war between bullish speculation and cautious hedging, potentially leading to heightened volatility in the near term.

Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.



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What to Expect on May 7

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The highly anticipated Pectra upgrade will launch on the Ethereum (ETH) mainnet on May 7, 2025, after overcoming a series of technical challenges and delays in the testnet phase. 

Ethereum developers announced the date during the All Core Developers Consensus (ACDC) meeting on April 3, 2025.

Pectra Upgrade Countdown Begins

The upgrade was initially slated for a tentative mainnet launch on April 30. However, Ethereum developers have postponed the launch by one week.

“We’ll go ahead and lock in May 7 for Pectra on mainnet,” Ethereum Foundation researcher Alex Stokes said.

In preparation for this, Stokes confirmed that client releases will be made available by April 21, ensuring that all users have the necessary updates and tools ahead of the mainnet launch. On April 23, a detailed blog post outlining the Pectra mainnet will be published.

Ethereum Developers Consensus Layer Meeting 154

The Pectra upgrade will introduce 11 Ethereum Improvement Proposals (EIPs) to enhance various aspects of the network. Notably, three EIPs are dedicated to improving the validator experience. 

The first is EIP-7251. This will increase the staking limit for validators from 32 ETH to 2,048 ETH per validator. This change aims to enhance capital efficiency for large stakers and staking pools.

“This simplifies the staking experience, allowing users to manage multiple validators under one node instead of several,” an analyst remarked.

Moreover, EIP-7002 introduces execution-layer triggerable withdrawals, giving validators more control. Meanwhile, EIP-6110 reduces the deposit processing delay from about 9 hours to just 13 minutes.

The upgrade will also include EIP-7702, a major step toward account abstraction. It allows Externally Owned Accounts (EOAs) to gain smart contract functionality while maintaining simplicity. This enables features like transaction batching, gas sponsorship (where third parties pay fees), passkey-based authentication, spending controls, and asset recovery mechanisms.

Finally, the upgrade increases blob capacity through EIP-7691. In addition, EIP-7623 helps manage the increased bandwidth requirements. These updates aim to make Ethereum more scalable, efficient, and user-friendly.

It is worth noting that the road to the mainnet launch has not been without hurdles. Two previous tests on the Holesky and Sepolia test networks failed to finalize properly. However, Pectra achieved full finalization on the Hoodi testnet on March 26, marking a significant milestone toward the successful deployment of the upgrade.

Despite the technical progress, ETH continues to face market challenges

Ethereum Price Performance
Ethereum Price Performance. Source: BeInCrypto

Data from BeInCrypto shows that ETH dropped 4.8% over the past week, with weekly losses extending to 17.1%. At the time of writing, the altcoin was trading at $1,822, reflecting a small daily gain of 0.8%.

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.



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XRP Futures and Illinois Lawsuit Relief

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Coinbase filed with the US Commodity Futures Trading Commission (CFTC) to launch futures contracts for Ripple’s XRP token.

The move comes after a positive development for the crypto derivatives market in the US, reflecting shifting regulatory ties in the country.

Coinbase Files for XRP Futures Trading With CFTC

Coinbase Derivatives has submitted a filing to self-certify XRP futures. It will provide a regulated, capital-efficient means for market participants to gain exposure to XRP. The new contract could go live as soon as April 21.

“We’re excited to announce that Coinbase Derivatives has filed with the CFTC to self-certify XRP futures – bringing a regulated, capital-efficient way to gain exposure to one of the most liquid digital assets. We anticipate the contract going live on April 21, 2025,” read the announcement.

Meanwhile, the official filing indicates that the XRP futures contract will be a monthly cash-settled and margined contract trading under the symbol XRL.

Each contract represents 10,000 XRP and will be settled in US dollars. Trading will be available for the current month and two subsequent months. As a protective measure, trading will be temporarily halted if the spot XRP price moves more than 10% within an hour.

XRP Price Performance
XRP Price Performance. Source: BeInCrypto

The Coinbase Exchange also confirmed that it has engaged with Futures Commission Merchants (FCMs) and other market participants. Both references reportedly expressed support for the launch.

However, Coinbase is not the first US-based exchange to introduce regulated XRP futures. In March, Chicago-based Bitnomial launched what it advertised as the country’s first CFTC-regulated XRP futures contract.

For Coinbase, however, the boldness comes after the CFTC eased key regulatory hurdles for crypto derivatives trading. As BeInCrypto reported, this signaled a more accommodating stance towards the sector.

“Pursuant to Commodity Futures Trading Commission (“CFTC” or “Commission”) Regulation 40.2(a), Coinbase Derivatives, LLC (the “Exchange” or “COIN”) hereby submits for self-certification its initial listing of the XRP Futures contract to be offered for trading on the Exchange…,” an excerpt in the filing indicated.

This suggests that the commodities regulator’s shift, revoking previous crypto-related guidelines, may boost institutional confidence. For XRP, this development bolsters confidence in the asset’s previously contentious status following Ripple’s recent regulatory breakthrough.

“Coinbase Derivatives’ filing with the CFTC to self-certify XRP futures aims to legitimize XRP trading by offering a regulated, capital-efficient product for investors,” one user remarked.

The futures contract might also help the odds of XRP ETF approval. Recently, the SEC delayed several applications to create one, and its status is in limbo.

XRP ETF approval odds
XRP ETF approval odds. Source: Polymarket

Data on Polymarket shows bettors see a 74% chance for XRP ETF approval in 2025 and a more modest 34% by July 31.

Elsewhere, the timing of this filing aligns with recent favorable regulatory developments for Coinbase. Reports suggest Illinois intends to drop its lawsuit against the exchange over its staking services.

Up to 10 states filed a lawsuit against Coinbase in June 2023 alleging that its staking program constituted unregistered securities offerings.

This recent development makes Illinois the fourth state to withdraw legal action against Coinbase. Vermont, South Carolina, and Kentucky also dismissed their cases on March 13, 27, and 31, respectively.

However, the cases remain active in Alabama, California, Maryland, New Jersey, Washington and Wisconsin.

These legal retreats coincide with the US SEC’s (Securities and Exchange Commission) February decision to abandon its federal lawsuit against Coinbase. BeInCrypto reported that this development marked a broader shift in the regulatory approach under the current administration.

“Regulators are losing steam, and Coinbase is stacking quiet courtroom wins. Staking’s future in the US might just be back on track,” a user commented.

Illinois’ decision to drop its lawsuit comes as the state advances a Bitcoin strategic reserve bill. Specifically, Illinois State Representative John M. Cabello introduced House Bill 1844 (HB1844), highlighting Bitcoin’s potential as a decentralized, finite digital asset.

“A strategic bitcoin reserve aligns with Illinois’ commitment to fostering innovation in digital assets and providing Illinoisans with enhanced financial security,” the bill read.

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.



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