XRP traders bet on a reversal as demand builds.
XRP seeks a rebound after a 4% drop, with key liquidity levels forming at the $2.48 mark, attracting the interest of bullish traders. A constant positive funding rate of 0.0041% suggests increasing demand for long positions despite the recent market weakness. XRP's Directional Movement Index shows +DI above -DI, indicating bullish momentum that could drive prices towards $2.50.
XRP has fallen 4% over the past week amid a broader market correction. At the time of writing, the fourth largest cryptocurrency by market capitalization is trading at $2.31. Amid a strengthened bearish bias in the overall market, on-chain data suggests a short-term bounce.
According to Coinglass, the liquidation heatmap of XRP shows a notable concentration of liquidity in the $2.48 price zone. Liquidation heatmaps are visual tools that traders use to identify price levels where large groups of leveraged positions are likely to be liquidated. These maps highlight areas of high liquidity, often color-coded to show intensity, with brighter zones representing a higher liquidation potential. Generally, these price zones act as magnets for price action, as the market tends to move toward these areas to trigger liquidations and open new positions.
Therefore, for XRP, the liquidity cluster at the $2.48 price level indicates strong interest from traders to buy or close short positions at that price. This opens the door to a potential short-term price rally. Furthermore, the altcoin's funding rate has remained positive despite its recent hurdles. Currently, it stands at 0.0041%.