Focusing on the XRP daily chart, the value of the token has recently recovered from its lows of around $0.4861, the level of Friday, October 25th. As observed on TradingView, this level acted as a support zone where buying interest started pushing the price higher. period of decline.
As a result, this rally pushed the cryptocurrency to around $0.5159, suggesting renewed bullish interest. The key question now is whether the XRP token can sustain this upward trajectory and break through the resistance level near $0.53, which appears to be the recent upper end of the trading range.
XRP’s on-chain data fuels optimism
XRP’s bullish outlook finds further validation in recent on-chain metrics as open interest increased by 1.63% to $693.02 million. This growth trend is coupled with a steady increase in the weighted funding rate since October 5th, peaking at 0.0132% on October 24th and currently holding at 0.0101%, according to CoinGlass data.
This increase shows strong confidence from long position holders who are willing to pay a premium to maintain their positions in anticipation of future profits. However, not all indicators are completely consistent with this bullish narrative. Token trading volume decreased by 20.36% to $346.3 million, casting a slight shadow on the optimistic sentiment.
Liquidation data shows further complexity, with long positions settled over the weekend at $6.67 million, while short liquidations were relatively minimal at $133.26,000. This indicates that the price trend of cryptocurrencies has not yet overcome this temporary market caution, and that a bearish tone will remain in the short term.
XRP technical data suggests consolidation
The RSI index has moved sideways and the RSI line is located at 39.42. This indicates that the XRP token is currently in a period of consolidation and may soon see further price stability. However, a break above the neutral 50 level would strengthen the market’s transition to bullish momentum and could lead to a break above the key levels.
The MACD indicator is also showing signs of a possible consolidation as the MACD and the signal line approach horizontally, suggesting a period of indecision continues among traders. This impasse is likely to continue the current sideways movement until a clear trend emerges.
In such a scenario, the XRP cryptocurrency may trade in a range in the short term. Still, a break above the 23.6% Fibonacci level at $0.5235 would strengthen the case for the bulls and could see the XRP token challenge the $0.53 resistance by the end of the week.
A win here would solidify the bullish outlook with a target of $0.5688 in line with the 50% Fibonacci level to close the price gap from the recent retracement. However, if the resistance at $0.53 holds firm, we could see a pullback to $0.50 or even $0.48 before another bullish attempt develops.
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