XRP Price Breaks Below Important Trendline, Raises Long Squeeze Risk

The price of XRP has taken a significant hit, breaking below an important trendline on the daily chart. This trendline had provided support since late March, but its loss of momentum is a clear warning sign for investors.

The NVT Ratio, which measures the relationship between market valuation and network activity, has also reached an overheated level. According to CryptoQuant analysis, this suggests that rallies from current levels may be fragile and short-lived.

Open interest in XRP futures has been rising, but the trendline break removes a key price support condition. The SMA50 and SMA100 are now functioning as resistance levels, making it more difficult for prices to rebound.