Ripple (XRP) Price Rises Above $2.50
Ripple (XRP) gained strength on Monday, trading above $2.50. This rise came as most cryptocurrencies showed slight gains. The recovery brought some relief after last week’s sharp sell-off.
XRP Derivatives Market Shows Weak Confidence
The sell-off on Friday was caused by several issues. These included global economic tensions and fears of a US government shutdown. Investors also doubted if crypto could stay bullish through October.
US President Donald Trump’s comments on trade with China triggered market fears. He suggested new tariffs due to China’s export controls on rare earth metals. This raised doubts about the trade deal between the two countries.
The sudden drop surprised many traders, causing large losses and liquidations. Data from CoinGlass shows XRP futures funding rates fell sharply. The rate dropped from 0.0081% on Thursday to -0.2045% on Friday. This means more investors bet on XRP prices falling.
Although the funding rate has slightly improved to -0.0005%, it remains low. This may keep XRP prices under pressure for some time.
XRP futures open interest (OI) also fell from $8.36 billion to about $4 billion. Lower OI shows traders are unsure about XRP’s recovery. Many investors are waiting on the sidelines. Watching futures OI trends could help traders make better decisions.
Technical Analysis: XRP Faces Key Resistance Levels
XRP is trading above $2.50 but below the 200-day Exponential Moving Average (EMA) at $2.63. The Relative Strength Index (RSI) rose to 38, showing bearish pressure is easing.
A daily close above the 200-day EMA would confirm stronger bullish momentum. Other important levels to watch are the 100-day EMA at $2.82 and the 50-day EMA at $2.85.
However, traders should stay cautious. The overall crypto market still shows bearish signs. The MACD indicator gave a sell signal on Thursday. If the MACD line stays below the signal line, selling pressure may continue.
