The crypto market is seeing selling pressure, with XRP reporting a 1.25% drop. Liquidations totalled $138 million, mainly from short positions. Positive funding rates reveal trader optimism for XRP, currently priced at $2.06. Consolidation between $2.03 and $2.12 indicates potential for significant price moves, contingent on maintaining support levels.
The cryptocurrency market is experiencing slight selling pressure, particularly affecting assets like XRP, which reported a 1.25% decline to $2.06 within the last 24 hours. In this timeframe, liquidations amounted to $138 million across the crypto derivatives market, predominantly influenced by short positions totalling $90 million.
Despite the broader market downturn, XRP’s funding rate remains positive, as indicated by CoinGlass, suggesting an underlying bullish sentiment among traders. This metric implies that long positions outweigh shorts, leading to increased demand for contract purchases.
The funding rate for the XRP/USD pair on Binance has been recorded at 0.0031%. This suggests that those holding long positions are paying fees to short sellers, reflecting a general outlook of optimism for XRP’s future price.
XRP may be poised for significant movement, having consolidated between $2.03 and $2.12 following a low of $2.03 on April 16. As trading volumes have dropped by 19% to $1.39 billion, a typical precursor to potential breakout volatility, traders remain alert to possible price direction changes.
The absence of selling pressure is highlighted by bears’ inability to breach the $2 support level. If bullish momentum prevails, XRP could aim for the 50-day Simple Moving Average (SMA) at approximately $2.23, a critical resistance level. Alternatively, breaching the $2 support could lead to a decline to the support area ranging from $1.72 to $1.61, favouring a bearish outlook.
