XRP is grappling with weak market performance, trading at approximately $2.03 after a 1.44% dip in the last 24 hours. The cryptocurrency struggles to hold its footing above critical support levels, with market indicators suggesting challenges and opportunities ahead.
Recent technical analysis shows XRP breaking below the 26 EMA, placing it closer to its next key support at $1.89. While this breakdown is worrying, it does not necessarily indicate long-term weakness, as holding the $1.89 level may trigger a bullish rebound.
However, should the decline continue, the 50 EMA at $1.47 could serve as a stronger safety net for the XRP.
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Funding Rates and Key Indicators Suggest Possible Recovery
Funding rates for XRP have reached historically low levels, indicating oversold conditions that often precede market reversals. Such conditions may create prerequisites for a short squeeze, which may affect XRP in a way and turn it into recovery.
The fluctuation could retest earlier support at $2.20 or lead to the $2.50 range in the longer term. Nevertheless, there are these opportunities, and still, the primary disadvantage of XRP is an absence of steady growth.
Low trading volume and subdued investor sentiment are hindering its ability to gain traction. This hesitancy is visible in the recent price action, which shows a downward trend within a flag pattern, a signal often associated with potential further declines before a breakout.
However, XRP’s history of significant reversals following funding rate bottoms offers some optimism. Should buyers emerge and funding rates persist to signal over-selling, then there could be a surge in the coming weeks.
XRP’s Support Levels Are Key to Its Trajectory
The $1.89 support level remains a critical zone for XRP’s recovery efforts, as holding above it could create a foundation for upward movement. On the other hand, failure to maintain this support may lead to a steeper drop, with $1.47 as the next key level to monitor.
According to CoinMarketCap, the trading volume, which surged 43.13% over the past 24 hours to $6.06 billion, suggests increasing activity, which could influence price movement in either direction.
Additionally, the RSI indicator has fallen near oversold territory, signaling potential buying opportunities for those anticipating a rebound. If market sentiment turns positive, XRP could build momentum toward recovering its recent losses.
Conclusion
XRP is at a crossroads, with low funding rates and key support levels playing pivotal roles in determining its next move. While bearish trends persist, oversold conditions and historical patterns offer hope for a recovery. Investors should closely monitor the $1.89 support level and trading activity in the coming days to anticipate XRP’s trajectory.
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