XRP’s price has been declining over the past two weeks, extending a downtrend that has challenged bullish investors.
Despite the ongoing dip, some traders see this period as a potential opportunity to accumulate XRP before a possible price rebound.
XRP Has Strong Support
Demand for XRP has surged sharply in the futures market, with XRP CME Futures open interest reaching $223 million within just 10 days of its launch. This rapid increase in open interest generally is a bearish indication as traders are likely placing short contracts.
However, the situation is different this time. This is because the launch of XRP Futures on CME provides the token with better exposure. Thus, investors allocating capital in this area are likely doing so out of anticipation of gains.
The funding rate, which has been nearly always positive for the past three weeks except for one instance of turning negative, further supports this bullish outlook. This shows that long contracts overpower short contracts.
Exchange reserves of XRP spiked at the beginning of the month until a little over two weeks ago, signaling a wave of selling pressure. However, since then, these reserves have declined by nearly 50 million XRP, worth over $114 million, indicating significant withdrawals from exchanges.
This decrease in exchange reserves highlights increased accumulation by investors, likely driven by FOMO (fear of missing out). Buyers are capitalizing on the relatively low prices, expecting XRP to reverse its downtrend and generate profits as momentum shifts.
XRP Price Has A Shot
Currently trading at $2.28, XRP is still caught in a two-week downtrend that has prevented a breakout. The altcoin remains vulnerable despite holding slightly above the $2.27 support level, and further declines cannot be ruled out.
If XRP maintains the $2.27 support, it could recover and break the downtrend, pushing prices higher toward $2.38. This rebound would validate the growing demand for futures and accumulation seen in recent weeks, signaling renewed investor confidence.
Conversely, losing the $2.27 support would open the door to further losses. XRP could fall toward the next support level at $2.12, invalidating the bullish outlook and potentially extending the downtrend before any meaningful recovery.
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Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
