Falling Open Interest Could Set Up Next Big MoveXRPCRYPTO:XRPUSDHCN-News12XRP has climbed back above $1.40, a level that has acted as a magnet for its price over the past month. One analyst who tracks order flow says the bigger picture looks healthy, but he expects XRP to dip once more before it can push into the $1.50s. Why $1.40 matters The $1.40 level marked the point of control for both the previous week and the previous month, the price where the most trading took place. XRP broke above it on Sunday after a strong green candle. The analyst said that move came from short sellers closing their positions rather than a full short squeeze. He called it “bullish structural development” but warned that the short-term picture “remains quite fragile.” A strong bounce from $1.34 On the higher time frames, he sees XRP in good shape. Last week, the price bounced hard from support at $1.34, and he said the buying at that low was strong enough to hold. XRP has traded inside the same range for about a month and a half, and he expects it to eventually reach the top of that range. The market backdrop is supportive Several outside factors are working in XRP’s favour, according to the analyst: Equities: stocks opened higher despite weekend headlines Volatility: the VIX, Wall Street’s fear gauge, remained calm Oil: prices dropped at the open, easing pressure on markets Funding rates: at normal levels, showing no excess bullish betting He also said that open interest in XRP futures has fallen sharply while the price holds steady. That leaves room for new leveraged positions to enter, which could fuel the next move. Why a dip may come first Sunday’s rally left behind small price gaps at $1.39, $1.38 and $1.37. Markets often return to fill such gaps. With several resistance levels overhead, the analyst expects XRP may briefly spike higher before falling back to test those lows. “I think ultimately we’re going to test those lows once more before we actually will have a shot at getting back into the 1.5s,” he said. Key XRP levels this week Resistance: $1.43, $1.45 and $1.46, with $1.45 the main level to watch Support: $1.36 to $1.37, where he expects a reaction Major support: $1.34, last week’s low Upside target: the $1.50s, once the dip is complete He expects a quiet week with little volatility, and said he is unsure whether current conditions will allow a fast move higher.