XRP is encountering significant resistance just below the $2.50 mark, casting a shadow on its short-term price prospects. As the cryptocurrency struggles to establish a solid upward trajectory, observers are now turning their attention to support levels hovering between $2.35 and $2.00.

Recently, the Open Interest in XRP Futures has seen a dramatic plunge from $5.8 billion to a mere $2.8 billion, indicating that speculative interest is waning. This decline reflects a broader market hesitation, as traders appear uncertain about XRP’s ability to break through crucial resistance levels.

Current Price Action

Currently, XRP is trading around $2.37, following repeated rejections near the $2.50 resistance, which has occurred three times over the last two weeks. This persistent resistance level is troubling, as it aligns with a densely populated supply area on the asset’s price chart. The bulls have struggled to maintain control, suggesting that sellers are firmly in charge for now.

Importantly, XRP is currently above its 50-day moving average of $2.37 but still below the more significant 200-day moving average of $2.52. This mixed technical signal indicates a prevailing indecision within the market. The Relative Strength Index (RSI) is at 48.48, revealing a neutral momentum with a slight inclination towards bearishness.

If the price breaks below the 50-day moving average, XRP may find itself in jeopardy, potentially exposing it to further downside risk towards the psychological support level of $2.00.

Futures Market Sentiment

The current lack of conviction in the futures market echoes the hesitance seen on the spot side. The recent decline in Open Interest seems to suggest that traders lack confidence in a significant bullish rally. Furthermore, the stagnant volume trends hint that recent price fluctuations are primarily influenced by spot market activity rather than leveraged trading.

In the absence of a vital uptick in open interest, or a significant change in market sentiment, XRP may find it increasingly difficult to surpass its current resistance level.

Future Price Outlook

Looking ahead, if XRP fails to secure the $2.35 support level, it could plunge towards $2.00, which could severely test investor sentiment. Conversely, a strong daily close above $2.50, accompanied by significant volume, would negate the current bearish narrative, opening up potential price movements toward the $2.75 to $3.00 range.

To achieve this, however, XRP will require a resurgence in buying momentum—something that is sadly absent at the moment. With both technical resistance and weakness in derivatives indicating a slight advantage for bears in the short term, the outlook remains precarious.

Nonetheless, it's essential to note that any major shift in market sentiment or a significant positive catalyst could swiftly alter this trajectory, allowing XRP to escape its current slump. Keep an eye on developments—this rollercoaster isn’t over yet!