- XRP shows resilience amid broader crypto volatility, maintaining key technical supports and eyeing a potential breakout above $2.40.
- Despite mixed derivatives data and legal uncertainty, bullish sentiment persists as market conditions and technical indicators align in XRP’s favor.
Ripple’s XRP token is displaying resilience in spite of recent volatility in the overall crypto space. On Wednesday, XRP traded around $2.24, cooling down by just over 2%. This dip completes three consecutive sessions of gains. Despite the drop-off, optimistic attitudes persist amid heightened market demand and indications of a general rally.
XRP momentum has been building since its recovery from its annual low of $1.61 on April 7. Since that time, the cryptocurrency has maintained support over important technical levels in the form of the 50-day, 100-day, and 200-day Exponential Moving Averages (EMAs). These EMAs all currently slope upward. These sorts of patterns are usually taken to be a verification of good bullish intent.
XRP is currently moving in a downtrend channel that has historically limited its price appreciation in the past. This time around, though, together with increased technical support and general market stability, the token may overcome it. Traders eye supply levels of $2.80 and $3.00, both seen as hurdles to a move upwards.
Market Confidence Spurs Altcoin Rally
Bitcoin’s continued hold above $94,000 adds to the supportive backdrop. BTC’s uptrend has been sustained by positive developments, including rising inflows into spot BTC exchange-traded funds and eased tensions between China and the United States. The resulting market confidence is encouraging traders to diversify into promising altcoins such as XRP, Floki, Virtuals Protocol, and Hyperliquid (HYPE).
XRP’s Relative Strength Index (RSI) is currently positioned at 55.90, a level that sits comfortably above the neutral 50 mark. This suggests a bullish bias remains intact. Analysts see this as a positive sign that XRP could soon push beyond the $2.40 resistance tested on Monday. If successful, the path to $3.00 may open up, though significant volume would be required to confirm a breakout.
Increased liquidity could also play a role. Should the price revisit immediate support levels at $2.05 and $2.15—corresponding to the 50-day and 100-day EMAs—investors may seize the opportunity to buy the dip. Such moves would likely reinforce the overall bullish setup.
Longs Liquidated as SEC-Ripple Talks Hit a Little Pause
At the same time, recent derivatives data signals growing, yet cautious, interest from traders. According to Coinglass, Open Interest (OI) on XRP contracts has declined by 3.33%, bringing the total to $3.90 billion. This shows that new trading positions are being opened, indicating increasing market engagement.
However, sentiment among leveraged traders is not entirely optimistic. The long/short ratio currently stands at 0.9369, slightly tilted in favor of shorts. Additionally, in just four hours, over $4,268,687 worth of long positions were liquidated, compared to only around $38,813 in shorts.
Apart from these sentiments, the ongoing legal proceedings between Ripple and the U.S. Securities and Exchange Commission are important to watch. Earlier this month, the parties agreed to a temporary pause in their appeals process. The stay allows both sides to engage in settlement talks and opens the door for the SEC commissioners to formally vote on the matter. The outcome could influence XRP’s market direction in the months ahead.
Recommended for you:
No Comment! Be the first one.