Ripple’s XRP has climbed nearly 10% in the past seven days to trade around $3 at press time. This comes amid an uptick in broader crypto activity, highlighted by the 1% rise in global crypto market capitalization over the same period.
The surge reflects renewed bullish sentiment, with both price action and derivatives data pointing to sustained momentum.
SponsoredLeverage Soars, EMA Breakout Confirms Trend
According to CryptoQuant, XRP’s Estimated Leverage Ratio (ELR) on Binance has climbed to a weekly high of 0.325, up 6% in the past seven days. The move signals rising investor confidence and a stronger appetite for risk.
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An asset’s ELR tracks the average leverage its traders use to complete trades on a cryptocurrency exchange. It is calculated by dividing the asset’s open interest by the exchange’s reserve for that currency.
When it declines, it reflects waning risk appetite among traders. It shows that investors are becoming more cautious about the token’s near-term outlook and steering clear of high-leverage positions that could magnify losses.
On the other hand, a rising ELR indicates that traders are taking on larger leveraged positions, reflecting stronger conviction and a willingness to take on higher risk.
SponsoredFor XRP, this trend signals growing market confidence and the potential for continued upward momentum as leveraged traders back the token’s short-term rally.
In addition, XRP’s rally has pushed its price above the 20-day exponential moving average (EMA) on the daily chart, confirming the bullish outlook above. As of this writing, the key moving average forms dynamic support below XRP’s price at $2.91.
The 20-day EMA tracks an asset’s average price over the past 20 trading days, giving weight to recent prices.
When a token’s price climbs above its 20-day EMA, it signals a shift toward bullish momentum. The 20-day EMA acts as a short-term trend indicator. Therefore, staying above it often means XRP buyers are gaining control, and the market is leaning bullish.
XRP Bulls Eye $3.22 If $3.12 Resistance Flips to Support
XRP lingers below the resistance formed at $3.12 as of this writing. If buy-side pressure strengthens and the token flips that price mark into a support floor, it could drive further gains toward $3.22.
However, an uptick in profit-taking would prevent this. In that scenario, XRP’s price could break below its 20-day EMA and fall to $2.87.
