XRP has surged back above the $3.00 mark, signaling a significant upward movement toward its record high of $3.66. The rise comes amidst a broader recovery in the cryptocurrency market, led by Bitcoin (BTC), as retail interest in the cross-border remittance token has intensified this week. This resurgence follows a prolonged period of risk aversion that impacted XRP’s derivatives market.
As traders anticipate a daily close above $3.00, the focus shifts towards the next significant resistance level at $3.35. Expectations center on potential interest rate cuts by the U.S. Federal Reserve on September 17, following disappointing economic indicators, including a revised Nonfarm Payrolls report that highlights a weakening labor market. These factors may bolster market sentiment heading into the fourth quarter.
The increase in XRP’s price correlates with a notable rise in futures Open Interest (OI), which is approaching the $8 billion threshold, up from $7.37 billion reported earlier this week. This uptick in OI, which represents the total value of outstanding futures contracts, suggests growing investor confidence and heightened trading activity.
Additionally, the XRP futures weighted funding rate has remained stable at 0.0103%, indicating that a significant number of traders are confidently entering long positions amidst the current bullish momentum.
From a technical perspective, XRP is maintaining support above several key levels, including the previously established resistance at $3.00, a descending trendline, and the 50-day Exponential Moving Average (EMA) currently situated at $2.91. The Moving Average Convergence Divergence (MACD) indicator supports this positive outlook, having maintained a buy signal since earlier in the week.
The Relative Strength Index (RSI), currently at 55, shows that bearish momentum is gradually receding, enhancing the potential for bullish trends. Traders are advised, however, to remain vigilant as a pullback beneath the 50-day EMA at $2.91 may trigger broader profit-taking and risk-off sentiment in the market. Should this occur, the 100-day EMA at $2.78 and the 200-day EMA at $2.53 could serve as crucial support levels.
