Ripple Price Prediction: XRP bulls regain control, $3 in focus
- XRP rebounds above $2.90 on improving sentiment and rising demand.
- Wallets holding between 1 million and 10 million coins reflect a risk-on sentiment, increasing exposure.
- Muted network growth and low funding rates suggest a lack of conviction in XRP’s recovery.
Ripple (XRP) is edging higher above support at $2.90 on Tuesday following a widespread sell-off in the broader crypto market, which saw Bitcoin (BTC) reach an intraday low of $108,666.
Cryptocurrencies “faced a slow bleed throughout most of the previous week, apart from a short-lived rip higher following Jerome Powell’s Jackson Hole comments hinting at possible September rate cuts citing labor market risks and inflation pressures while shifting toward a more flexible, data-driven framework,” K33 Researchers said in a market report.
The cross-border money remittance token is poised to break out above the $3.00 pivotal level, potentially prompting bulls to double down on their influence and push XRP toward its record high of $3.66, reached on July 18.
XRP whales buy the dip
Large volumes of XRP have remained largely unaffected by recent price fluctuations, increasing their exposure. According to Santiment’s data, addresses holding between 1 million and 10 million XRP now account for approximately 10.6% of the total supply, up from 9.8% in early July and 9.14% in early March.
If whales continue buying the dip, demand could eventually outstrip supply, enabling bulls to carve out a recovery path above the near-term $3.00 resistance. A risk-on sentiment may strengthen in the coming weeks, supported by potential interest rate cuts in September.
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XRP Supply Distribution | Source: Santiment
Despite the steady demand from select whale cohorts, a muted network growth could suppress the XRP price recovery in the coming days and weeks. Santiment’s on-chain data highlights a sharp drop to approximately 4,400 newly created addresses. Network growth represents the rate of the protocol’s adoption. Sharp or steady declines indicate a reduction in interest in XRP, which could lead to price stagnation or extend the decline.
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XRP Network Growth | Source | Santiment
The demand for leverage long positions has decreased amid the price decline, as evidenced by the futures weighted funding rate holding near the mean line. CoinGlass data shows the funding rate at 0.0038% down from the peak in July at 0.0524%. Low funding rates imply that fewer traders are leveraging long positions in XRP, reflecting a lack of conviction in short-term price increases.
XRP Futures Weighted Funding Rate | Source: CoinGlass
Technical Outlook: XRP bulls regain control
XRP price is extending its rebound above support at $2.90, backed by growing positive sentiment. A break is anticipated above the 50-day Exponential Moving Average (EMA) resistance at $2.94 as bulls look forward to breaching the pivotal $3.00 level.
The Relative Strength Index (RSI), which is rebounding toward the midline after declining to 42 in the bearish region, points to increasing demand for XRP.
Still, the Moving Average Convergence Divergence (MACD) indicator must offer a buy signal to affirm the bullish outlook. This signal will manifest with the blue MACD line crossing above the red signal line and the red histogram bars turning green above the mean line.
XRP/USDT daily chart
Key areas of interest for traders are the 50-day EMA resistance at $2.94 and the 100-day EMA support at $2.75. Price action on either side of this range could shape XRP’s direction in the short term. Beyond the crucial $3.00 level, bulls would expand their gaze to the all-time high of $3.66 and later launch XRP into price discovery.
Cryptocurrency metrics FAQs
The developer or creator of each cryptocurrency decides on the total number of tokens that can be minted or issued. Only a certain number of these assets can be minted by mining, staking or other mechanisms. This is defined by the algorithm of the underlying blockchain technology. On the other hand, circulating supply can also be decreased via actions such as burning tokens, or mistakenly sending assets to addresses of other incompatible blockchains.
Market capitalization is the result of multiplying the circulating supply of a certain asset by the asset’s current market value.
Trading volume refers to the total number of tokens for a specific asset that has been transacted or exchanged between buyers and sellers within set trading hours, for example, 24 hours. It is used to gauge market sentiment, this metric combines all volumes on centralized exchanges and decentralized exchanges. Increasing trading volume often denotes the demand for a certain asset as more people are buying and selling the cryptocurrency.
Funding rates are a concept designed to encourage traders to take positions and ensure perpetual contract prices match spot markets. It defines a mechanism by exchanges to ensure that future prices and index prices periodic payments regularly converge. When the funding rate is positive, the price of the perpetual contract is higher than the mark price. This means traders who are bullish and have opened long positions pay traders who are in short positions. On the other hand, a negative funding rate means perpetual prices are below the mark price, and hence traders with short positions pay traders who have opened long positions.
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
