Crypto market analyst CasiTrades has published a detailed technical analysis concerning XRP’s current price structure, warning of potential volatility driven by rising funding rates.
Rising Risk Conditions in XRP Consolidation
The analysis shared on June 11 highlights the growing risk conditions emerging within XRP’s ongoing consolidation phase. XRP is nearing the apex of its macro consolidation zone, with price trading just above key support levels. Despite this support holding for now, funding rates are gradually rising without confirmation of any meaningful breakout.
Support Levels at Risk
The core concern lies in the disparity between increasing open interest and flat price action. Algorithms and market makers closely monitor these conditions, and when long positions become overcrowded and under-protected, it often leads to a rapid downside move designed to flush leveraged positions. The attached chart outlines $2.25 as a critical support zone. A failure to maintain that level would expose XRP to deeper pullbacks.
Wave 3 Outlook and Indicators
CasiTrades does not present this potential drop as bearish in the broader context. Instead, the analysis suggests that such a liquidity sweep could generate the necessary momentum for a significant breakout in what appears to be an emerging Wave 3 of a larger Elliott Wave structure. Additionally, a potential bearish divergence was noted in the RSI indicator, further supporting the case for caution in the near term.
CasiTrades’ analysis reinforces the importance of closely monitoring funding rates and support levels in the days ahead. Traders are advised to remain cautious as XRP approaches the climax of its consolidation, where the outcome could dictate both near-term corrections and the start of a new impulsive phase.
