As open interest falls 30%, optimistic traders lower their leverage bets, and the price of XRP looks to break out of a 7-month consolidation area.
Since December 2024, the price of XRP has been trading in a consolidation range as a result of buyer and seller hesitancy following the conclusion of the Q4 2024 rise. XRP stayed trapped in this range on June 19, trading at $2.16 with a 0.3% gain. But will the price eventually break out as bulls reduce their leverage bets on Ripple and Bollinger bands tighten?
XRP price eyes breakout from 7-month consolidation
Over the past seven months, the price of XRP has fluctuated between $1.67 and $2.94. The majority of altcoins have failed to replicate Bitcoin’s momentum because capital has been shifting towards the biggest cryptocurrency, thus this erratic movement hasn’t just happened with the Ripple token.
A breakout for Ripple’s coin may be on the horizon, according to the technical structure on the daily timescale. When Bollinger bands start to narrow, it usually means that a significant move—either upward or downward—is about to start.
A bullish surge may begin if there is a positive breakout over the upper Bollinger band of $2.31. However, XRP may plummet and force a bearish breakdown below the lower Bollinger range of $2.08, if sellers begin selling immediately as they lose faith in holding it.
Additionally, a symmetrical triangular pattern indicates that a breakout from consolidation is expected for the price of XRP. The price may begin a 41% rally to $3.22 if it breaks through resistance at the upper trendline. On the other hand, XRP might have to drop below $2 to reach the triangle’s bearish target price of $1.24 if this support level is lost.
Buyers would need to enter the market once more in order for a bullish breakthrough to happen, and at the moment, they are still apprehensive due to its reading of 45. Until this happens, XRP price could remain within this consolidation zone.
An XRP breakout from consolidation is largely supported by optimistic news in addition to buyers. In the Ripple v. SEC case, the community is currently anxiously expecting a joint motion decision that would entice purchasers to return to the market.
Bulls Lower Bets on Leverage
Bulls are lowering their leverage bets on XRP, according to Coinglass data, which may let the price to rise again. Bulls typically hold long holdings in an asset; when these positions are liquidated, sell-side pressure is generated, which forces XRP to return to its range lows. As a result, it may be a good sign for the price when these traders cut their positions.
The drop in open interest, which has dropped from its peak of $5.52 billion in May to $3.94 billion, illustrates the decreased leverage. This is a drop of almost 30% in just one month.
Concurrently, traders have terminated long positions and are choosing to take short positions, as indicated by the long/short ratio dropping to 0.96. In the event of a short squeeze, this might be positive for the price of XRP.
Consequently, as the Bollinger bands on the daily charts tighten and a symmetrical triangle emerges, there is a greater likelihood that the price of XRP will break out of the seven-month consolidation zone. A bullish or bearish breakthrough could also be facilitated by the closing of leveraged bets.
Trump family is quietly reducing its stake in World Liberty Financial
According to a recent allegation, one of President Trump’s businesses is covertly lowering its ownership stake in World Liberty Financial from 60% to 40%. This occurred at some point during the previous eleven days.
Nonetheless, there are a number of conflicting explanations regarding Trump’s motivation. It’s unclear if he has already sold these shares, if he intends to do so in the near future, or if he has another reason.
What is Trump doing with World Liberty?
The crypto business of President Trump is extremely intricate. The ownership of the license to sell a wallet bearing the TRUMP logo was recently unclear due to the fact that several members of his family hold significant stakes in several businesses.
According to Forbes, Trump significantly reduced his shares in World Liberty, which are primarily owned by DT Marks DeFi LLC.
Just updated my diagram of Trump’s crypto entanglements based on his most recent financial disclosures 😵💫 pic.twitter.com/bnivWod82s
— Molly White (@molly0xFFF) June 16, 2025
By altering a single sentence on its website, World Liberty made this information public, but it did not provide an explanation for Trump’s choice. More significantly, it’s unclear who now controls this 20% of WLF and whether any revenue-sharing agreements would change as a result.
The community is now left to make educated guesses about these crucial aspects.
Forbes, on the other hand, asserted that Trump desired a large return on World Liberty shares and was inspired by the previous Circle IPO.
According to the research, a simple stock sale might have brought in almost $190 million for the President and his friends. There are a few competing theories, though, and there isn’t yet a paper trail to support this theory.
For instance, the Senate just enacted a historic stablecoin rule that opens up a wide range of new commercial prospects. World Liberty may be assuming control of the meme coin’s activities after announcing a new TRUMP Treasury plan.
A potential stock offering might support the company’s consolidation efforts in anticipation of significant additional WLFI sales.
USD1, the World Liberty Financial Stablecoin, is now the 5th largest by market cap with $2B FDV. Backed by Trump and tied to solving the US debt maturity wall, it’s likely to grow rapidly.
With the Genius Act pushing stablecoin regulation, this space is rapidly becoming a macro… pic.twitter.com/veMwUUviaw
— VirtualBacon (@VirtualBacon0x) June 18, 2025
The government and the cryptocurrency community were very critical of President Trump’s endeavors. What if he intended to move these World Liberty shares to another family-run company, such as American Bitcoin or Trump Media?
This might make it more difficult for outsiders to examine a network that is already difficult to understand.
Ultimately, all of this is conjecture. It’s possible that President Trump’s Word Liberty proposals combine elements of all these notions. Or he might not be utilizing any of them.
The crypto community should currently monitor these developments as they have the potential to cause market disruptions.
Ethena Labs and Securitize enable 24/7 swaps between USDtb and BlackRock’s BUIDL
For the first time, institutional and decentralized financial users can now switch between Ethena’s USDtb stablecoin and BlackRock’s tokenized U.S. Treasury fund, BUIDL, at any time of day.
Securitize’s announcement of the new capacity on June 18 represents a step forward in integrating DeFi with traditional finance. It establishes a new benchmark for on-chain composition and access to tokenized assets. A new liquidity fund smart contract has made it possible for eligible customers who were onboarded through Securitize to conduct atomic swaps between USDtb and BUIDL at any time of day.
Holders of the BlackRock USD Institutional Digital Liquidity Fund, or BUIDL, can now access a wide range of DeFi strategies that already use USDtb without any restrictions. With a circulating supply of more over $113 million, USDtb is mostly backed by BUIDL and provides a yield-exposed, stable, and composable dollar on-chain.
BUIDL now has 24/7 on-chain liquidity via @ethena_labs
We’ve partnered with Ethena to enable atomic swaps from BlackRock’s BUIDL to USDtb—unlocking new composability, liquidity, and accessibility for the world’s largest tokenized Treasury fund.
Here’s what it means 🧵👇 pic.twitter.com/vymjYACt0T
— Securitize (@Securitize) June 18, 2025
Securitize and Ethena (ENA) Labs developed the integration, continuing a collaboration that started with the Converge blockchain’s release in March of this year. It eliminates the need for off-chain middlemen by allowing asset holders to move between tokenized treasuries and programmable dollars. For both CeFi and DeFi players, this creates fresh trading opportunities and liquidity.
BUIDL’s recent listing as collateral on Deribit and Crypto.com further demonstrates its growing importance in crypto infrastructure. With significant inflows from institutions looking for regulated yield exposure, the fund currently controls around 40% of the $7.3 billion tokenized U.S. Treasuries market.
Up to 90% of USDtb’s reserves were initially held in BUIDL by Ethena Labs, however they have subsequently ceased providing further allocations. Nonetheless, USDtb is strongly tied to the fund’s performance and liquidity.
The deep reserve concentration in BUIDL introduces systemic hazards. The support for USDtb might be put to the test if BUIDL encountered redemption restrictions or regulatory scrutiny. Nonetheless, the system seeks to strike a balance between capital efficiency and transparency through audited smart contracts and verified reserves.
