XRP Longs Surge as $1 Support Faces Key Test

XRP longs have surged in recent weeks, with over $1.5 billion worth of new positions since August. This increase in leverage is a double-edged sword, as it signals stronger conviction among traders but also raises the risk of liquidation if support breaks.

The current price of XRP is trading near $1.00, which has become a critical level of support. The daily chart shows a descending trendline and a narrowing formation resembling a descending wedge, with the top of the wedge approaching $1.10-$1.15. A breakout above this area would weaken the bearish structure.

The Relative Strength Index (RSI) is near 35.64, indicating weak momentum, while trading volume remains restrained. This compression creates a two-sided setup, where continued spot demand could support leveraged positions and push price through descending resistance, but a sharp reversal could force crowded longs to unwind and amplify downside pressure.