• XRP’s recent downtrend triggered a bearish crossover of the 20-day and 50-day EMAs

  • Derivatives data slightly favors bulls, especially as altcoins approach their recent support levels

XRP continues its sideways trajectory after facing multiple rejections at the $0.60 resistance level in the last three months. The recent pullback from this level resulted in an ascending channel breakout on the daily chart, highlighting a potential shift in market sentiment.

At press time, XRP is trading at around $0.5328, having gained 1.66% over the past 24 hours.

Can XRP bulls stage a comeback?

XRP has been facing resistance at the $0.60 level, resulting in a long period of consolidation. The recent rejection at this level triggered a classic ascending channel breakout, resulting in a break below the 20-day EMA and 50-day EMA – these levels are now acting as immediate resistance.

The downtrend of the 20-day EMA and its possible bearish crossover with the 200-day EMA suggests that bearish forces have been increasing. If such a crossover materializes, XRP might continue to consolidate below the $0.56 resistance level, limiting the scope for an immediate recovery.

However, XRP is showing a strong rebound trend from the $0.52 support level. A sustained rebound from this support level could help it reclaim the EMAs, which could pave the way for a near-term recovery. If the momentum strengthens, a retest of the $0.56 resistance level and then $0.6 is likely.

At press time, the RSI is at 41.79, reflecting fairly bearish sentiment. Compared to the higher lows of price action since August, the recent trend of the RSI shows flatter lows – indicating a mild bullish divergence. This hints at a possible recovery if bulls step in, although much still depends on a broader sentiment shift.

Derivatives data reveals THIS

XRP’s derivatives market sentiment appears mixed but slightly tilted towards a bullish outlook. At the time of writing, the 24-hour long/short ratio remains around 0.9662. However, this ratio on Binance and OKX shows a strong bullish edge – 3.8216 and 3.11 respectively.

Interestingly, XRP options volume surged by over 753%, indicating an increase in speculative activity. Open interest also rose by 3.3%, with a sharp rise in options open interest (+27.2%) indicating renewed interest among traders despite the recent downturn.

Here, it is worth noting that longs were liquidated higher, which indicates profit-taking behavior as XRP failed to sustain its gains above $0.56. However, the prominent long positions among top traders mean that a potential recovery may still be in play.




It should be emphasized that this article is for reference only and does not constitute investment advice.

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