XRP is showing signs of potential instability, as noted by market analyst CasiTrades in a detailed technical update. The crypto asset remains stuck in a consolidation range while signs of increasing leverage continue to surface, suggesting that a significant move could be imminent.
According to the analysis shared on June 11, XRP is nearing the edge of a long-standing macro consolidation pattern. The current price is merely above a major support area, which is, however, starting to creak under changing market conditions. Among the most alarming issues is the gradual increase in the perpetual futures funding rate.
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The funding rate has reached 0.01 percent every eight hours, a moderate rise, but the analyst cautioned that if this figure approaches 0.02 percent without a price explosion, it may indicate a concentration of leveraged long positions with minimal protection. These conditions can easily initiate liquidity events, such as sudden price declines that are utilized to squeeze out overexposed traders.
Market makers monitor these signals closely, and when many positions are crowded on the same side of the market, the chance of a forced liquidation rises. If the current support levels cannot be maintained, XRP may suffer a steep decline.
Key Support Zones Under Pressure as Leverage Builds
CasiTrades identified $2.25 as a critical support zone, and a breakdown below this level opens the door for declines to $2.01, $1.90, and $1.55. These lower targets correspond to important liquidity pools and Fibonacci retracement levels visible on the four-hour chart.
Source: X
In spite of this short-term risk, the overall picture remains that of a possible upward wave in the Elliott Wave formation. The analyst indicated that a bottoming-out sweep might provide the impetus to cause a breakout. Should that happen, XRP may have the 1.618 Fibonacci extension at roughly $3.77 and even target higher ground beyond the $4.00 area.
Meanwhile, technical indicators like the Relative Strength Index are starting to roll over on a bearish basis. This news helps validate the opinion that XRP could become more volatile before taking the next major direction.
As the pressure to deliver funds grows and the price movement stands still, XRP seems to be approaching a decisive period. Analysts remain focused on support levels, with a breach potentially outlining the direction of the asset throughout the summer.
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