XRP has been facing challenges in maintaining growth lately, struggling to hold onto key support levels. Despite efforts to rally its price, XRP has been unable to surpass the $2.32 mark, leaving it hovering slightly above $2.00.

Investors who entered the market during XRP's recent bullish period are now experiencing losses as the cryptocurrency failed to breach crucial barriers.

A substantial amount of short positions, valued at around $400 million, are at risk of liquidation if XRP's price reaches $2.32. However, even with XRP trading at $2.15, just 8% away from this level, the possibility of liquidations happening soon seems unlikely.

Current investor behavior indicates that liquidations might not occur in the near future. XRP holders are more inclined to sell rather than hold onto their assets at this time.

The Realized Profit/Loss ratio for XRP suggests a weakening momentum, with realized profits declining and potentially turning into losses soon. The selling pressure from investors who bought during the November 2024 surge when XRP hit $2 is preventing any substantial price increase, affecting bullish sentiment.

XRP is currently priced at $2.15, slightly below the local resistance level of $2.16, which it previously failed to turn into support. The cryptocurrency is consolidating under $2.27, a resistance point that has been contentious since late March. Should XRP maintain support above $2.00, it could stabilize at these levels and prevent further losses for investors.

The likelihood of continued consolidation is high as long as XRP remains above $2.00, keeping the market relatively steady as investors wait for signals for the next market move. With no significant catalysts in sight, the price may fluctuate within this range.

If XRP manages to break the $2.27 resistance and move towards $2.40, a new wave of buying triggered by potential liquidations could drive the price higher. This scenario would bring a more optimistic outlook and shift market sentiment towards bullish.