Although the price is consolidating in a narrow range at the support level, XRP bulls seem to be back in the market as the XRP trading volume surges.On October 7, 2024, most of the top cryptocurrencies experienced a significant price surge, but the price of XRP remained stable in the past 24 hours.

Ripple bulls double down

Despite the overall market downturn and the ongoing legal battle between the U.S. SEC and Ripple, XRP derivatives traders are maintaining a bullish outlook. Long positions continue to dominate, reflecting investors’ optimism about XRP’s price potential.

This sentiment is supported by the token’s funding rate, which has remained positive. As of now, the funding rate is 0.004%, indicating continued confidence in XRP’s future growth.

A positive funding rate indicates that there is a higher demand for long positions than short positions in the market. This occurs when traders are optimistic about the future price increase of an asset and are therefore willing to pay a premium to maintain a long position.

However, XRP spot traders do not share this stance. They continue to sell their holdings due to concerns that the price will drop sharply after the SEC appeal hearing begins. The negative Chaikin Money Flow (CMF) of the token confirms the strengthening of selling pressure.

As of this writing, XRP’s CMF is below the zero line at -0.03. This indicator measures the flow of funds into and out of an asset. When its value is below zero, selling pressure is high as traders remove liquidity from the market to prevent further investment losses.

XRP Current Price Momentum

Currently, XRP is trading near $0.538, with a slight price increase of 0.75% in the past 24 hours. During the same period, its trading volume surged 90%, indicating high participation from investors and traders, which is a positive sign for XRP holders.

XRP Technical Analysis and Upcoming Levels

XRP appears bullish but has been stuck in a consolidation range between $0.512 and $0.545 for the past five trading days. Based on recent performance, whenever the price of XRP reaches this level, it tends to experience a 20% rally.

However, if XRP breaks out of this consolidation area and closes the daily candle above $0.55, there are high chances of a 20% surge to $0.65 levels in the coming days.

This bullish outlook is further supported by XRP’s relative strength index (RSI), which is currently in the oversold territory, suggesting a possible bullish price reversal in the coming days. However, it remains below the 200 exponential moving average (EMA) on the daily timeframe, indicating the presence of a downtrend.

Bullish On-Chain Indicators

In addition to technical analysis, XRP’s on-chain indicators also support this bullish outlook. The main liquidation levels are $0.53 and $0.563 as traders are over-leveraged at these levels.

However, data shows that bulls have held long positions worth over $8.45 million and are confident that the market will not fall below the $0.53 level.

Additionally, XRP’s future open interest has increased by 3.75% in the past 24 hours and has been steadily increasing, indicating growing interest among traders, with many likely investing more in long positions.