Ripple (XRP) Holds Key Support Level
Ripple (XRP) is staying above the important support price of $2.61 on Monday. Since Thursday, XRP has mostly been rising, reflecting growing optimism in the crypto market. To keep this positive trend, XRP needs to finish the day above $2.61. This would increase the chances of breaking through the next resistance at $2.68.
Low Retail Demand Weighs on XRP
After a big crypto market drop on October 10, retail interest in XRP has been weak. Over $19 billion in crypto was sold off during that event. CoinGlass links low XRP demand to weak activity in the derivatives market.
- XRP futures Open Interest (OI) dropped about 40% from $7.43 billion on October 1 to $4.46 billion.
- OI recently rose from a monthly low of $3.49 billion but remains far below levels seen in July.
- In July, XRP reached a record high of $3.66 amid strong investor interest.
Keeping XRP above $2.61 is important to restart the upward trend. A rising OI would suggest investors trust XRP’s recovery and its price gains.
Technical Outlook for XRP
XRP is testing the 200-day Exponential Moving Average (EMA) at $2.61. Falling below this level could signal profit-taking. The Relative Strength Index (RSI) is at 51 but declining, which shows less buying strength.
The Moving Average Convergence Divergence (MACD) indicator remains positive since Friday. This encourages some investors to take more risk. As long as the MACD line stays above its signal line and rises, XRP’s short-term uptrend is likely to continue.
If XRP stays above the 200-day EMA, the next resistance points are:
- 50-day EMA at $2.68
- 100-day EMA at $2.73
These levels may slow XRP’s price gains, especially if investors sell early due to overall market sentiment.
The US Federal Reserve will announce its interest rate decision on Wednesday. A 25-basis-point cut is expected. Lower interest rates typically help riskier assets like XRP and Bitcoin. This may lead investors to diversify their portfolios into these cryptocurrencies.
If XRP falls below $2.61, a short-term price drop could follow. The price might fall toward $2.18 and $1.90 before trying to recover again.
