XRP ticks up as bullish derivatives, EMA support signal breakout
- XRP ticks up after defending $1.38 support amid increasing bullish derivatives positioning.
- The Open Interest Weighted Funding Rate remains in positive territory as OI steadies at 2.24 billion XRP.
- XRP sits above major moving averages, with momentum indicators supporting stability and a potential breakout.
Ripple (XRP) is grinding upward and getting closer to a short-term breakout above $1.40 on Tuesday. This uptick follows the remittance token's defense of support at $1.38, after a short-lived attempt to breach selling pressure at $1.50 last week.
Holding above $1.40 would reinforce the broader bullish outlook, while continued struggle below the same level would trigger an extended sell-off amid investor exhaustion.
XRP steadies as bulls increase long exposure
The XRP derivatives market is relatively stable on Tuesday, as reflected in perpetual futures Open Interest (OI) edging marginally higher at 2.24 billion XRP, from 2.23 billion XRP the day before and 2.2 billion XRP last Sunday. Looking back, OI has stabilized after falling from 2.78 billion XRP on August 15. If retail traders continue increasing exposure, they would help provide a tailwind to sustain the recovery above $1.40.
Meanwhile, bullish traders are increasing their risk exposure, with the OI-Weighted Funding Rate holding in positive territory at 0.01%. According to CoinGlass data, this metric has remained in this range since August 28, suggesting bulls have the upper hand and are willing to pay a premium to keep long positions open.
Moreover, appetite for risk assets in the broader cryptocurrency market sits in the Greed territory, according to the Fear & Greed Index. The index holds at 69 on Tuesday, down slightly from 71 the previous day. If this holds, the setup would continue to reinforce bullish positioning.
Technical analysis: XRP upholds bullish outlook
XRP trades near $1.40 after testing support at $1.38. The token maintains a constructive bullish bias as it consolidates above a stack of Exponential Moving Averages (EMAs), suggesting a broadly supported uptrend despite the latest pullback from recent highs.
The Relative Strength Index (RSI) near 59 hints at moderating but still positive momentum, while the Moving Average Convergence Divergence (MACD) has slipped modestly into negative territory, indicating that upside traction is softening rather than collapsing.
Initial resistance emerges at the descending trendline break area around $1.42, where a daily close above would reopen the path toward highs at $1.50 and $1.70, respectively. On the downside, immediate support is first at the 200-day EMA near $1.36, with further cushions at the 50-day EMA around $1.26 and the 100-day EMA near $1.24 if profit-taking deepens. As long as price holds above this EMA cluster, the broader bullish structure is likely to remain intact.
(The technical analysis of this story was written with the help of an AI tool. Know more.)
Cryptocurrency prices FAQs
Token launches influence demand and adoption among market participants. Listings on crypto exchanges deepen the liquidity for an asset and add new participants to an asset’s network. This is typically bullish for a digital asset.
A hack is an event in which an attacker captures a large volume of the asset from a DeFi bridge or hot wallet of an exchange or any other crypto platform via exploits, bugs or other methods. The exploiter then transfers these tokens out of the exchange platforms to ultimately sell or swap the assets for other cryptocurrencies or stablecoins. Such events often involve an en masse panic triggering a sell-off in the affected assets.
Macroeconomic events like the US Federal Reserve’s decision on interest rates influence crypto assets mainly through the direct impact they have on the US Dollar. An increase in interest rate typically negatively influences Bitcoin and altcoin prices, and vice versa. If the US Dollar index declines, risk assets and associated leverage for trading gets cheaper, in turn driving crypto prices higher.
Halvings are typically considered bullish events as they slash the block reward in half for miners, constricting the supply of the asset. At consistent demand if the supply reduces, the asset’s price climbs.
Author
John Isige
FXStreet
John Isige is a seasoned cryptocurrency journalist and markets analyst committed to delivering high-quality, actionable insights tailored to traders, investors, and crypto enthusiasts. He enjoys deep dives into emerging Web3 tren
