- XRP’s price dropped by 1.74% in the last 24 hours
- Metrics indicated potential shifts in market sentiment
XRP’s price fell by 1.74% on the charts within the past 24 hours, a move that brought it to the critical support level of $0.595.
However, this level, previously broken during a rally, is now under threat of being breached once again. The bullish momentum that this recent rally built up could be at risk if XRP fails to hold on to this level.
Market outlook
XRP’s price chart indicated a key test as the asset challenged the $0.595 support level. This level. which was marked by the latest breakout, could turn into a battleground between the bears and the bulls.
Breaking below this line may result in a sudden fall down towards the next support level at $0.555 and possibly, reverse all the achievements made within the previous weeks.
Source: TradingView
Looking at the chart, XRP seemed to be consolidating inside a narrowing range, with resistance located around $0.6487 and support at $0.5557. The narrowing price action, together with a possible stochastic indicator crossover, suggested that there may be an imminent significant move.
XRP strain or gain?
According to Coinglass, there are an increasing number of liquidations, especially in long positions on the liquidations front. Some notable shifts occurred though, particularly around the aforementioned price level, by both longs and shorts pools – A sign of increased volatility.
Source: Coinglass
Open interest flashed a mixed signal!
Finally, looking at the open interest (OI)-weighted funding rate data, it seemed to be clear that XRP’s market has seen fluctuation since early July. Positive funding rates show the dominance of long-term investors who are ready to pay extra for their positions.
However, there was a dip in XRP’s funding rates, suggesting weakening bullish sentiments. If this continues, it may add further downside pressure on the prices.
Source: Coinglass
What next for XRP?
The immediate future for XRP is dependent on its ability to hold the support around the $0.595-level. A breakdown below this could open doors for retesting lower support levels, while a successful defense by the bulls could fuel a bullish run continuation.
