Despite market fluctuations, XRP remains stable with strong support around it. As of press time, XRP is trading at $2.27, and it has gone up by 0.85% during the past 24 hours. The price increased strongly at the start of March but soon fell again after passing through some important moving averages.
XRP Derivatives Market Shows Strong Bullish Signals
In the derivatives market, XRP shows signs that add strength to the idea of a bullish trend. According to CoinGlass, the daily trading volume has gone up to $5.27 billion by 26.64%, and open interest rose by 5.25% to $4.27 billion. Such high numbers indicate countries are becoming more interested and are investing for the long term.
Source: CoinGlass
The amount of long positions on major exchanges like Binance and OKX is overwhelming, showing that both individuals and institutions support the market. The OI-weighted funding rate has been positive at 0.0106. This suggests that long-term XRP holders are willing to maintain their position by paying more, demonstrating confidence in XRP’s future prospects.
XRP Holds Key Support Levels and Eyes $2.60 Resistance
XRP went above both its 50-day and 100-day exponential moving averages (EMAs) at prices of $2.26 and $2.28. Nevertheless, the resistance near the 200-day EMA pushed it down just under $2.40. The current retracement is being viewed as healthy and could potentially lead to higher prices ahead.
Currently, the token is being supported by the 100-day Exponential Moving Average, with the 50-day EMA nearby as another area of potential support. These important turning points will affect the next actions taken. As long as these levels remain, XRP has a strong possibility of encountering selling pressure at the 200-day EMA and earlier trendlines at $2.60.
Source: TradingView
If XRP stays in the $2.26-$2.28 zone, it may help it advance further in the future. On the other hand, a fall below $2.26 could take the prices back to the 200-day EMA, which is at $2.08. The bullish outlook for XRP is maintained as long as its price remains above $2.26.
The market action of XRP suggests a period of healthy consolidation, which could lead to a significant price change soon. Even though the current slowdown may appear worrisome to a few, this is just how markets typically function.
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Due to significant support from institutions, a rise in trading activity, and a positive outlook in futures, XRP can sustain its bullish trend. The $2.26-$2.28 area is a zone traders and investors should watch for stability and signs of the cryptocurrency moving up.
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