XRP is showing signs of a double bottom pattern, a potential bullish signal, but bearish pressure still remains. According to our analysis, $3 support level is key, as XRP continues to hold above it despite market uncertainty. However, weakening on-chain metrics could put pressure on buyers, potentially causing them to lose momentum and increasing the risk of a selloff.
July has been the strongest month for XRP so far, with the price seeing major gains following several market updates. Data from CoinMarketCap shows that XRP surged over 41% in the past 30 days, holding steady above the important $3 support level.
According to Coinglass, XRP faced a wave of liquidations in the last 24 hours. The total value of these liquidations was more than $17.5 million, with nearly $13 million coming from long positions, as buyers exited following a rejection around the $3.2 mark, leading to a selloff.
Open interest for XRP dipped slightly, down 0.16%, now standing at $8.46 billion. Despite this small decline, the funding rate remains positive at 0.0092%, suggesting that traders still lean toward a bullish outlook even though bearish pressure is growing.
Over the past week, monthly XRP futures have been consistently trading at a 6% to 8% premium, which shows that market sentiment remained stable during the $3 price retest. Even when XRP briefly moved above $3.6, there was no sharp rise in demand for leveraged long positions.
Some of the recent buying demand around XRP also comes from speculation about a U.S.-approved spot ETF. If approved, it could positively impact other altcoins as well, including Litecoin, Solana.
XRP is currently facing strong competition between buyers and sellers around the 20-day simple moving average (SMA) at $3.1. As of writing, XRP price trades at $3.08, declining over 1.5% in the last 24 hours.
Looking at the XRP price chart, bears repeatedly failed to establish a foothold below $3, the 38.2% Fibonacci retracement. The price action, when viewed on the hourly chart, suggests a double bottom formation at $3, with the neckline resistance at $3.334 (the July 28 high).
If the price drops below the $3.05 support level, it could fall further to around $2.95. Buyers are likely to defend this level strongly, as a break below it might lead to a deeper decline toward $2.8.
On the other hand, if XRP bounces back from $3, it would show strong buying interest at lower levels. While the 20-day SMA may act as resistance during the recovery, if bulls manage to push through, the XRP/USDT pair could rise to $3.33 and possibly even reach $3.7.
The RSI level has bounced back strongly, currently trading at 46 level. Though it holds below the midline, buyers are confident enough to send the price toward $3.3 retest.
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