XRP Returns to Its Critical $1.35 Support With $488M in Open Interest Watching

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<a href="https://jpyxx.com/xrp-usd/">XRP</a> Returns to Its Critical $1.35 Support With $488M in Open Interest Watching

Key Takeaways

  • XRP closed at $1.3633, approximately $0.013 above the $1.35 support zone.
  • $1.35 held as support three times since mid-April on daily chart.
  • Open interest at $488.3M on Binance.
  • SMA50 at $1.3954 and SMA100 at $1.3982 converging above price as dual resistance.
  • RSI at 42, signal at 51.71: momentum negative, structure holding.

Why the $1.35 Zone Has Structural Weight

The price level of $1.35 has successfully resisted declines three times since mid-April, making it a stronger support area. Each time the price drops to this level and bounces back, more traders place their stop-loss orders just below it, potentially causing a significant price drop if the level is eventually broken. Looking at the daily price chart, you can clearly see this level acting as a consistent floor throughout April and May, with the price repeatedly testing and recovering from it.

The current price of $1.3633 is slightly above a key level, just $0.013 higher. This difference is less than 1% of the price, so a small drop of less than 1% would mark the fourth attempt to test this level without indicating any major underlying problems beyond what’s already visible in today’s trading.

What High Open Interest Adds to the Support Picture

With open interest at $488.3 million – near a two-month high – and the price only slightly above the $1.35 support level, the market is heavily invested right as this support is being strongly tested. This suggests a lot of traders are positioned at a critical point.

CryptoQuant’s research shows that open interest (OI) reached $500 million in mid-May, the highest it’s been since March, before decreasing a bit. While high open interest doesn’t automatically mean the price will go up or down, it usually suggests bigger price swings are possible. Specifically, at a price of $1.35, a drop below this key support level with this much open interest could cause a rapid sell-off as leveraged traders are forced to close their positions. Conversely, if the price bounces back from $1.35 with this level of open interest, it could lead to a squeeze of short positions and a price increase.

The MA Structure and RSI Condition

When the 50-day and 100-day Simple Moving Averages are very close together (less than half a cent above the current price), they don’t act as separate resistance levels – instead, they form a single, combined barrier that the price needs to break through in one push. The Relative Strength Index (RSI) currently at 42, with its signal line significantly above it, suggests the necessary momentum for that breakout hasn’t built up yet.

As a crypto investor, I’m watching the moving averages closely. The 50-day SMA is currently at $1.3954 and the 100-day at $1.3982 – both are trending downwards and are only about 3 to 3.5 cents above the current price. The 200-day SMA is much higher at $1.6976, also falling, and about 33 cents above where we are now. While that 200-day level *could* cap any potential bounce, it doesn’t really factor into what’s happening with the price right now.

What the Setup Resolves To

XRP is currently in a tight trading range. The price has bounced back from $1.35 three times, acting as a solid support level. Above, a key moving average is creating a ceiling around $1.38. With significant leveraged positions on both sides, any price movement is likely to be substantial. The Relative Strength Index (RSI) remains below 50 at 42.00, indicating weakening momentum during each test of the support level. This suggests the support is handling selling pressure from a declining market, rather than a stable or improving one.

As a crypto investor, I’m watching closely over the next few days – the charts have been hinting at a breakout or breakdown since mid-April. If we can close a day above $1.40, breaking through both the 50-day and 100-day moving averages with strong trading volume, that would confirm we’re heading higher and that recent support held strong. However, if the price drops below $1.35 with heavy volume, it’ll likely mean the recent stability wasn’t genuine buying, and a significant price drop could follow due to the large amount of open interest currently in the market.

This article is for informational purposes only and shouldn’t be considered financial, investment, or trading advice. Coindoo.com doesn’t support or suggest any particular investment or cryptocurrency. Always do your own research and talk to a qualified financial advisor before investing.

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2026-05-21 19:20