Despite a recent downturn, some traders are viewing the current XRP price dip as a strategic moment to accumulate the cryptocurrency ahead of a potential price rebound. Market data reveals increased interest and activity around XRP, suggesting growing investor confidence in the token’s medium-term prospects.
Strong Support for XRP Amid Futures Surge
XRP’s demand has surged notably in the futures market since the launch of XRP CME Futures, with open interest reaching $223 million in just 10 days. Typically, a spike in futures open interest may signal bearish sentiment as traders often take short positions. However, the current scenario differs. The introduction of XRP Futures on CME has increased the token’s market exposure, attracting capital from investors anticipating price gains.
Supporting this bullish sentiment is the funding rate, which has remained positive for nearly three weeks, indicating that long positions outweigh shorts. This suggests traders expect upward price momentum despite recent price declines.
Exchange Reserves Signal Increased Accumulation
Exchange reserves for the coin experienced a significant spike at the start of the month, indicating initial selling pressure. However, in the past two weeks, these reserves dropped by almost 50 million XRP — worth more than $114 million. This decline reflects substantial withdrawals from exchanges, implying that investors are moving XRP off exchanges into private wallets for longer-term holding.
This accumulation behavior is likely driven by FOMO (fear of missing out), as buyers capitalize on lower prices, expecting the coin to reverse its downtrend and generate profits once market momentum shifts.
XRP Price Outlook: Holding Support or Further Decline?
Currently trading near $2.28, the coin has been stuck in a two-week downtrend, struggling to break out despite holding slightly above the critical $2.27 support level. If the coin sustains this support, it could trigger a recovery toward $2.38, validating recent futures demand and accumulation trends.
On the other hand, a drop below $2.27 could lead to further losses, pushing XRP down to the next support at $2.12. Such a move would dampen bullish expectations and potentially prolong the current downtrend before any meaningful price recovery.
Investors and traders closely watching the coin should monitor these key levels, as they will likely dictate the altcoin’s near-term price direction.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
Also Read: Ripple Eyes $150 Trillion Cross-Border Market with XRP as Global Settlement Layer
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
