XRP price picks up steam supported by heightened risk-on sentiment

Ripple (XRP) price is gaining bullish momentum, increasing over 3% to trade at $2.19 at the time of writing on Thursday. A breakout to $3.00 could follow a potential climb above $3.00, as the broader cryptocurrency market wakes up. However, XRP must breach a crucial four-month descending trendline to affirm the bulls' grip ahead of the anticipated breakout.

Cryptocurrencies wake up post-Fed interest rate decision

The Federal Reserve (Fed) left interest rates unchanged at 4.24%-4.5%, citing market volatility and tariff policies championed by United States (US) President Donald Trump and their potential impact on the economy. Powell emphasised the need for caution, adding that the central bank would "wait for more data on the economy's direction before changing interest rates."

President Trump's tariff policies shook global markets in April, with the Fed Chair saying they "are highly likely to generate at least a temporary rise in inflation." The crypto market stayed stable during Powell's Wednesday press conference but picked up steam in Thursday's Asian session. 

CoinGecko reports the total crypto market cap rose 1.2% to $3.175 trillion, signaling a broader bullish trend. All top ten digital assets, including XRP, are up over the past 24 hours.

XRP bulls eye breakout above key trendline resistance

A 2.46% increase in Open Interest (OI) indicates renewed interest in XRP's uptrend as fresh capital enters the market. Similarly, options OI surged by 20.45% to $1 million in the last 24 hours, driving the bullish narrative amid increased speculative activity and trader engagement. 

The long-to-short ratio of 1.0218 shows a bullish bias, meaning more traders are betting on XRP's price rising, reinforcing the optimistic sentiment.

XRP derivatives' market data | Source: CoinGlass

The heightened risk appetite is evident with the increase in whale holdings, with between 10 million and 100 million tokens. According to Santiment's Supply Distribution metric, this whale cohort has steadily been growing its share of the supply to account for 12.22% from 10.47% recorded on February 24. The 1.75% increase suggests confidence in XRP is growing as investors anticipate a larger breakout.

Supply Distribution metric | Source: Santiment 

XRP's price is reaching out for a potential breakout above a confluence resistance at $2.21, established by the 50-day and the 100-day Exponential Moving Average (EMA). A long-term descending trendline resistance from January is slightly above this key supply zone.

Traders might be holding off for the uptrend to confirm above this level, ensuring the bullish momentum is strong enough to reach the $3.00 mark, last seen in early March.

The Relative Strength Index (RSI) indicator's flip above the midline of 70 emphasises the short-term bullish outlook, which will likely hold XRP's price steady in upcoming sessions on Thursday.

XRP/USD daily chart 

On the other hand, the SuperTrend indicator is stuck above the XRP price, creating headwinds. This trend following indicator uses the Average True Range (ATR) and a multiplier to gauge the general price direction. When the price crosses below the indicator line, changing the colour to red from green signals a downtrend in play.

XRP's position below the 50-day, the 100-day EMAs, and the extended trendline implies challenges to the uptrend and a potential rejection. A trend reversal would bring the 200-day EMA at $1.99 in focus, with intense declines likely to test the April 7 low at $1.62.