XRP Price Drops to $3.00 Amid Market Volatility
On Friday, Ripple’s XRP fell to $3.00 after a brief rise to $3.14 earlier in the week. This decline follows a drop in retail interest across the cryptocurrency market. The midweek gain was driven by the US Federal Reserve’s dovish outlook for the fourth quarter. The Fed signaled two more interest rate cuts before the year ends, after a 25-basis-point cut on Wednesday. This boosted risk appetite for crypto and other risky assets. However, increased volatility ahead of the weekend reversed the gains.
XRP Futures Open Interest Shows Mixed Signals
The XRP derivatives market shows steady growth in futures Open Interest (OI). OI measures the total value of active futures contracts. According to CoinGlass, XRP’s OI rose to $8.96 billion on Friday, up from $7.37 billion on September 7. This suggests more traders are opening new short positions, adding fresh capital to the market.
The rise in OI combined with the price drop indicates bearish sentiment. Traders expect the downtrend to continue in the short term.
Technical Indicators Point to Possible Further Decline
XRP is testing the $3.00 support level amid growing risk-off sentiment. The Relative Strength Index (RSI) fell to 52 from 57 on Wednesday, showing weakening bullish momentum. If the RSI drops below 50, it could confirm stronger bearish pressure and push XRP below $3.00.
The SuperTrend indicator gives a sell signal, suggesting traders reduce holdings or increase short positions. This indicator acts as a resistance level, so downside risks remain while it stays above the price.
If XRP breaks below $3.00, the next support levels are the 50-day Exponential Moving Average (EMA) at $2.95 and the 100-day EMA at $2.83.
On the other hand, the Moving Average Convergence Divergence (MACD) still shows a mild bullish signal since September 8. This could lead to a rebound from $3.00. A recovery might push XRP toward resistance at $3.35 and the record high of $3.66.
The Ichimoku Cloud indicator also supports a bullish outlook. XRP remains above the Cloud, which acts as strong support. Holding above this level suggests the overall uptrend could continue despite the recent price drop.
