Ripple (XRP) Price Rises Alongside Major Cryptos
Ripple (XRP) is trading above $2.65 on Tuesday. It is moving higher with other big cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH). After the sharp drop on October 10, interest in XRP has steadied. This has encouraged investors to look for new opportunities.
Growing Retail Demand Boosts XRP Futures
Retail interest in XRP is increasing. XRP futures Open Interest (OI) reached about $4.51 billion on Tuesday. According to CoinGlass, this is a sign of growing risk appetite among traders.
OI fell to $3.49 billion on October 19, its lowest since late April. This drop happened as investors moved away from risk due to global economic worries and trade tensions between the US and China.
The rise in OI suggests that more traders are returning to XRP. However, the OI-weighted funding rate has fallen to 0.0055% on Tuesday, down from 0.0093% the day before. This shows some traders may be betting against XRP’s recovery. Many seem to expect XRP to test the critical support at $2.18 again.
Technical Analysis: XRP Faces Resistance Amid Profit-Taking
XRP is holding above its 200-period Exponential Moving Average (EMA) at $2.65. But it faces resistance near $2.69 on the 4-hour chart. A descending trendline below the EMA also adds support.
The Relative Strength Index (RSI) is at 62 and trending lower, indicating weakening buying pressure and possible profit-taking. The Money Flow Index (MFI) is 61, down from overbought levels. A continued drop could push XRP below the 200 EMA and lead to more selling.
The 50 and 100-period EMAs converge near $2.55, forming a strong support area. Other key support levels are $2.32 and $2.18 if the price falls further.
If market sentiment improves, XRP may break above the $2.70 resistance. This will depend partly on the US Federal Reserve’s upcoming interest rate decision. Experts expect a 96.7% chance the Fed will cut rates by 25 basis points. This would lower the benchmark to 3.75%–4.00%.
Rate cuts usually help riskier assets like XRP. They also signal looser monetary policy and more money flowing into the market.
