XRP continues to move sideways after encountering resistance at $0.60 multiple times in the last three months. The recent pullback from this level has resulted in an ascending channel breakout on the daily chart, highlighting a possible shift in market sentiment.

At press time, XRP is trading around $0.5328, having gained 1.66% over the past 24 hours.

Can XRP bulls stage a comeback?

XRP has been facing resistance at the $0.60 level, resulting in a long period of consolidation. The recent decline from this level has triggered a classic ascending channel breakout, resulting in a break below the 20-day EMA and the 50-day EMA – these levels are now acting as immediate resistance.

The downtrend of the 20-day EMA and its possible bearish crossover with the 200-day EMA suggests that bearish forces have been gaining strength. If such a crossover materializes, XRP might continue to consolidate below the $0.56 resistance, limiting the scope for an immediate rebound.

However, XRP is showing a strong rebound trend from the $0.52 support. A sustained rebound from this support could help it reclaim the EMAs, paving the way for a near-term recovery. If the momentum picks up, a retest of the $0.56 resistance and then $0.6 is likely.

At press time, the RSI was at 41.79, reflecting fairly bearish sentiment. The recent trend of the RSI shows flatter lows, while the price action since August has made higher lows – indicating a mild bullish divergence. This hints that a recovery could occur if bulls step in, although much depends on a broader sentiment shift.

Derivatives data shows

XRP’s derivatives market sentiment is mixed, but slightly biased towards a bullish outlook. As of writing, the 24-hour long/short ratio is around 0.9662. However, this ratio on Binance and OKX shows a strong bullish edge – 3.8216 and 3.11 respectively.

Interestingly, XRP options volume surged by over 753%, indicating an increase in speculative activity. Open interest also rose by 3.3%, and the sharp rise in options open interest (+27.2%) suggests that despite the recent market downturn, traders are once again interested.

Notably, the high rate of long liquidations indicates profit-taking behavior as XRP failed to sustain its gains above $0.56. However, the prominent long positions among top traders suggest that a potential recovery may still be underway.