XRP Maintains $2 Support – Are Buyers Gaining Control?

XRP is effectively holding the critical $2 demand zone, both psychologically and technically. Recently, AMBCrypto reported that Ripple has partnered with LMAX to incorporate its stablecoin, RLUSD. Initiatives like these contribute to the broader adoption of cryptocurrency, forming part of Ripple’s long-term strategy.

Key Takeaways

XRP is holding a significant support level at $2.
Ripple's partnership with LMAX is aimed at boosting the adoption of its stablecoin RLUSD.
An inverse head and shoulders pattern may signal potential bullish momentum for XRP.
Low exchange inflows and whale confidence suggest a positive outlook despite short-term volatility risks.
The $1.96-$2.0 area is crucial for support, while $2.15 serves as an important resistance level for XRP.

XRP consolidates above key support as spot buyers remain dominant

While the effects of such partnerships may not be immediately reflected in market prices or sentiment, technical analyses have shown a developing inverse head and shoulders pattern on XRP's daily chart, which could herald a bullish breakout for the token.

Additionally, Ripple has observed consistent outflows from exchanges, indicating signs of accumulation. However, a high Long/Short Ratio serves as a caution for bullish traders about possible short-term volatility that could clear out overcrowded long positions. Furthermore, low inflows from whale investors suggest that major players are not offloading XRP, demonstrating their confidence in the asset.

Indications of a Possible Local Price Bottom for XRP

XRP Funding Rates

Source: CryptoQuant

In a post by CryptoQuant Insights, analyst PelinayPA noted that positive and rising Funding Rates often precede periods of price consolidation and brief pullbacks due to the costs associated with maintaining long positions. As of now, the sentiment is rather the opposite, with prices staying above the $2 demand zone, suggesting a potential local price bottom.

The lack of excessive enthusiasm in the market implies that any price declines may be minor. A shift to positive Funding Rates in the forthcoming days might coincide with a bullish movement in XRP's price.

Moreover, another contributor, TopNotchYJ, highlighted that the spot Cumulative Volume Delta (CVD) demonstrates a dominant buying interest. This indicates aggressive buying pressure, particularly in the 90-day Spot CVD metric, where large whale orders have been observed in recent weeks.

XRP Cost Basis Distribution

Source: Glassnode

The Cost Basis Distribution Heatmap has emphasized that the $1.96 to $2.0 range serves as a crucial support area due to a high concentration of supply at those levels. A drop below $1.96 could lead to increased bearish sentiment. Conversely, the $2.15 level is another key area for bulls to monitor as a resistance point, with XRP bulls having faced rejection in this zone over the past week.

Final Thoughts

As XRP continues to maintain its position above crucial support levels, market participants will be watching closely for signs of a breakout or further consolidation. The presence of buyer dominance and technical patterns may play a significant role in the upcoming price movements of XRP.