XRP recently reached 3.00 USD, but its ability to maintain this price is at risk due to a potential rotation of capital back into Bitcoin. The Relative Strength Index (RSI) for XRP is approaching 90, indicating overbought conditions similar to previous downturns.
Bitcoin is coiling under its all-time high of 122,000 USD, signaling a possible breakout which could negatively impact XRP. The 30% gain of XRP against Bitcoin in two weeks could lead to renewed capital rotation back into Bitcoin, heightening the risk.
XRP’s derivative market shows an open interest of 9.24 billion USD, a record high. This surge reflects strong demand but raises concerns about potential profit-taking and market corrections if XRP experiences a deleveraging scenario similar to previous patterns.
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