As Bitcoin fluctuates near the $96,000 mark, XRP, the fifth-largest cryptocurrency, is trading at $2.41. With a market cap of $139 billion, XRP price trend is aiming for a bullish comeback.
In the last 24 hours, the XRP price is down by 2.72%, while ing a 4.74% drop over the past seven days. The recent downturn has brought XRP to a crucial level, hinting at a potential bullish reversal.
XRP Price Hits Local Trendline
In the daily chart, the XRP price trend since December 2023 has been forming a rising channel pattern. Within the channel, the XRP price has recently taken a negative shift to test its local trendline.
XRP is forming a series of Doji candles near the trendline, signaling a potential price reversal. Currently, XRP has ed a 24-hour low of $2.38 and is teasing a bullish comeback towards the $2.50 psychological mark.
If the price holds above the rising channel’s , XRP price trend could set the stage for a significant bullish recovery.
Indicators Signal a Bullish Reversal in XRP Prices
Amid the possibility of a bullish comeback, technical indicators are taking an optimistic stand. The MACD momentum indicator is teasing a potential bullish crossover, amid the declining bearish histograms.
Furthermore, the daily RSI line has avoided with the oversold boundary and is now on a gradual recovery trend toward the halfway level. Hence, the momentum indicators the possibility of a bullish comeback.
A bullish RSI recovery alongside an improving MACD crossover could strengthen buyers’ confidence and lead to renewed upward momentum.
Derivatives Market and Institutional Sentiment on XRP
Amid the chances of a bullish reversal, speculations in the derivatives market are on the rise. Despite the recent drop of 5.33% in open interest, the XRP OI still stands at $3.53 billion.
This reveals a large fund of crypto traders betting on XRP’s price movement. In the past 24 hours, the long-to-short ratio of XRP has remained significantly bearish.
However, the funding rate has significantly improved. The OI-weighted funding rate has increased to 0.0077%, reflecting the increased willingness of traders to pay a to hold long positions.
An increase in the funding rate signals growing confidence in long positions, which could fuel a strong upside move if buying momentum builds.
Will XRP Price Hit $3.70?
Amid the possibility of a bullish comeback, Fibonacci levels paint the immediate resistance at $2.58, aligning with the 23.60% Fibonacci level. On a positive note, the 50% Fibonacci retracement level at $3.17 suggests a potential 30% upside move.
Meanwhile, the rising channel pattern suggests a bullish trend targeting the upper trendline near $3.70. This promotes the bullish potential of more than 50%.
On the flip side, the crucial levels for XRP are at $2.00 psychological and $1.76 level. If XRP price fails to hold key , a drop below $2.00 could expose the asset to deeper retracements, increasing bearish dominance.
