Ripple (XRP) Price Rises Above $2.40
Ripple (XRP) is showing a mild rebound, trading above $2.40 on Wednesday. This rise follows gains in Bitcoin (BTC), which is above $104,000. However, the derivatives market still shows cautious sentiment. Traders are waiting for a clear uptrend before increasing risk.
Active XRP Addresses Increase by 40%
The number of active addresses on the XRP Ledger rose by 40%, reaching about 32,000 on Tuesday. This is up from 19,000 addresses on Sunday. Higher active addresses indicate more user activity and demand for XRP. It also points to growing adoption and investor confidence in the XRP ecosystem.
Despite this, retail demand has not picked up much after the October 10 deleveraging event. XRP futures Open Interest (OI) was $3.95 billion on Wednesday, down from $4.11 billion the day before, and much lower than $8.36 billion on October 10. An increase in OI is needed to support a strong recovery.
The OI-Weighted Funding Rate fell sharply to 0.0024% on Wednesday, down from 0.0084% the previous day. This shows traders are bearish and adding short-term positions, lacking confidence in a lasting rally.
Technical Analysis: XRP Showing Bullish Signs
XRP’s price rise above $2.40 is backed by stronger technical signals and better market sentiment. The Moving Average Convergence Divergence (MACD) indicator shows a buy signal, which supports a short-term bullish trend. If the MACD line stays above the signal line, risk appetite may grow.
The Relative Strength Index (RSI) is near entering bullish territory, increasing chances for a rebound. Key resistance levels traders watch include the 50-day EMA at $2.55, the 200-day EMA at $2.58, and the 100-day EMA at $2.64.
If investors take profits early, XRP could drop below $2.40. Support levels to watch are $2.23 and $2.07, tested earlier this month.
