XRP fell in the past 24 hours and also fell on the weekly chart Market sentiment was low compared to other major assets
While the broader cryptocurrency market has seen a notable surge, XRP has remained largely stagnant. In fact, the altcoin’s value has fallen slightly over the past week, further worsening its flat performance over the past 24 hours.
This lack of momentum, combined with changes in funding rates, has led to speculation about XRP’s near-term direction.
XRP performance falls short of market rally
The recent rally in the crypto market has been largely driven by Bitcoin’s new all-time high, with most altcoins riding the bullish wave. However, XRP stands out as an exception, or one of the exceptions.
As of this writing, XRP has recorded slight declines in both daily and weekly performance metrics, making it one of the few major assets that is bucking the trend. This lackluster performance has puzzled investors, given the overall market enthusiasm.
The drop in XRP put it in the same category as Toncoin, but Toncoin also failed to gain traction amid the market rally. Rising broader markets have traditionally had a knock-on effect on altcoins. Unfortunately, this time XRP has been separated from the rest.
Funding rates reflect changes in sentiment
Analyzing XRP funding rates across various exchanges provides insight into sentiment within the futures market. We have seen significant changes in funding rates recently, indicating that traders may be adjusting their positions based on changes in the market outlook.
A high positive funding rate usually signifies bullish sentiment, as traders are willing to pay a premium to hold long positions. Conversely, a decline or change in funding rates is often a sign of waning enthusiasm or a shift to a bearish stance.
Source: Glassnode
In the case of XRP, Glassnode data reveals a move towards a more neutral or slightly negative funding rate.
This suggests that the optimism that fuels other assets in the crypto market may not be as strong for XRP. This divergence can be interpreted as highlighting the current divergence of XRP from the overall bullish trend of the market.
Potential support level?
An analysis of the altcoin price chart reveals that it is consolidating around the $0.52 level on the chart.
This level is below the 50-day and 200-day moving averages of approximately $0.56. Simply put, bearish sentiment is dominating the altcoin market as major resistance forces are currently holding back XRP.
Source: TradingView
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The relative strength index (RSI) was hovering around 44, indicating that XRP is not in oversold or overbought territory. However, it showed some weakness as it trended closer to the oversold range.
This level could act as a support zone, allowing buyers to step in if they believe the asset is undervalued. However, the need for significant momentum on the RSI suggested that buyers may remain hesitant and waiting for stronger market catalysts.
Next: Can BOME overcome key resistance for a bullish reversal?
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