What to know:
- XRP holds above key EMAs despite derivatives markets showing strong bearish trader positioning
- Negative funding rates and rising open interest signal a potential short squeeze setup
- Wave structure keeps higher price targets valid if current support levels continue holding
XRP price shows resilience as bearish sentiment intensifies across derivatives markets. As of April 18, 2026, its price structure still supports potential upside despite growing downside positioning.
The disconnect in market positioning relative to price behavior is becoming more pronounced with each passing day.
XRP Price Structure Indicates Upside Opportunity
XRP price is currently demonstrating both of the expected outcomes as per the analysis provided by More Crypto Online. It was discovered that the XRP price had finally reached the target zone for the orange wave C within the overall structure.
Additionally, there are several indications that the structure allows for an extended D-wave, which will likely keep the higher prices available. Therefore, it appears at this point that the XRP price has yet to invalidate its bullish structural perspective.
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XRP Momentum Remains Strong Across Key Indicators
The TradingView chart has shown that XRP is trading above all three EMAs (20, 50, and 200). This alignment indicates a prolonged period of sustained bullish momentum across all relevant timeframes.
Given that the XRP price is supported by these dynamic EMA lines, they should continue to provide price stability moving forward. As long as the RSI level stays at its high points, there will continue to be an excessive amount of buying interest from investors in this market.
The trend of the MACD also continues to move upwards and supports the idea that the overall level of momentum for XRP has continued to grow. Both RSI and MACD are showing agreement with the structure illustrated by the Wave Analysis.
Sentiment Towards Shorts Among Derivatives Traders Is Increasing
As reported by CryptoQuant’s Darkfost, bearish sentiment has grown dramatically since early 2026. XRP funding rates on Binance have been consistently negative during this time frame.
Although XRP price has experienced a 60% drawdown, Darkfost stated that traders still anticipate additional downward price movement.
This type of behavior illustrates an increasing confidence held by many participants that this will be the ultimate direction for XRP’s price. Additionally, according to CoinGlass, open interest on XRP across the majority of exchanges continues to rise over the last day.
Still, negative funding rates continue to dominate as reflected in the data provided on CoinGlass. The average funding rate is approximately -0.0002%, providing evidence that most market participants are positioned for a further decline in XRP price.
Growing Imbalance Between Market Positioning And Price Behavior
A growing disparity exists between the price structure for XRP and the market positioning expectations for the XRP price. The structure provides support for the possibility of additional upside for XRP.
However, the overall expectation among traders is that XRP will continue to fall. This imbalance in pricing expectations is similarly observed in both funding behavior and derivatives data related to XRP.
When market participants develop a consistent view relative to any given asset or group of assets, the likelihood of reversing their views increases significantly. Historical examples exist of previous “setups” generating rallies in the same manner as occurred with XRP.
The historical example referred to by Darkfost was in May 2019, when the XRP price moved from approximately $1.6 to $3.6. A gain of nearly 127%.
Future Direction Contingent Upon Support Levels
There may be additional upside for XRP if it can continue to hold at its present level of support. There may also be a chance that an alteration in the way traders perceive risks will lead to increased short covering as prices rapidly move upward.
Conversely, if alternative cryptocurrencies experience losses in value over a longer-term period, then upside opportunities may be limited in the immediate timeframe.
If a break occurs beneath support levels, then the bullish potential of the current outlook would diminish.
Why It Matters
Extreme bearish positioning can increase the probability of a strong upside move when structure remains bullish.
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
Also Read | XRP Holds Key Support as Wave Structure Signals Move Toward $1.52
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