XRP, one of the most popular cryptocurrencies, has recently returned to the important support level of 2.96 USD. This level has attracted the attention of both traders and analysts due to its significant role in determining the future direction of XRP's price.
According to CasiTrades, the 2.96 USD level serves as an important support zone for XRP, and its significance goes beyond short-term price fluctuations. As the cryptocurrency market reacts strongly to technical indicators, the ability of XRP to maintain above this support zone will be key in shaping investor sentiment.
Analyst CasiTrades states that if XRP successfully holds above 2.96 USD or higher, this could signal that the recent pullback is merely a normal correction within a broader uptrend. The RSI is attempting to create a bullish divergence on smaller time frames, indicating the potential strength of XRP at this support level.
Potential Surge to 5 USD
Analyst CryptoBull analyzes that the support level of 2.96 USD is crucial for XRP's trajectory. Successfully retesting this level could open up opportunities for subsequent bullish moves. The next target is 3.50 USD, followed by a potential bullish move towards the 5 USD mark.
However, if the support level of 2.96 USD does not hold, this could signal a shift in momentum, potentially altering XRP's market outlook in the near future. The overall market trend will play a crucial role in determining whether this move becomes a reality. According to an analyst, XRP's price will explode and rise quickly to a level where the majority will be left behind.
At the time of writing, XRP's price is at 2.96 USD, down 2.73% in the past 24 hours. However, the overall market sentiment remains cautiously optimistic, with traders eagerly waiting to see if the price can hold at this important support level.
Market Volatility and Speculative Interest
According to Coinglass, alongside price movements, the funding rate of XRP is also a concern for market participants. Fluctuations in XRP's funding rate, particularly the spike in mid-July, reflect growing speculative interest and market confidence.
Notably, the funding rate has surged above 0.05%, coinciding with XRP's strong price increase. Since then, the funding rate has cooled down, but this change indicates that investor sentiment is shifting, potentially signaling an upcoming move.