After recent setback, may XRP rally? On-chain data is optimistic
Despite a 400% spike in the last month, Ripple's XRP financing rate remains low compared to prior bullish seasons.
Contrary to speculations, RLUSD will not launch on Wednesday.
XRP tries to recoup $2.58 while testing $3.57, its all-time high.
XRP traded at $2.4 on Wednesday as Ripple Labs confirmed that its RLUSD stablecoin would not launch on exchanges despite crypto community rumors.
XRP fell 11% on Wednesday despite its 400% month-to-date gains. The cryptocurrency has led the alt season's trend.
Coinalyze data shows that XRP's financing rate is consistent compared to its February 2024 rally and March 2021 bull market despite the significant surge.
A constant financing rate suggests that the market isn't excessively optimistic and has room for price rise, lowering overheating danger.
XRP's weighted sentiment is also low relative to past rallies. This suggests that regular traders may not be driving the asset's recent high increase.
RLUSD, Ripple's US dollar-pegged stablecoin, attempts to stabilize transactions. Coinbase and other major exchanges are preparing to issue RLUSD for trading.
Most crypto community members expected RLUSD to debut on Wednesday, but Ripple said important elements are being completed with the New York State Department of Financial Services.
XRP sees sale pressure at $2.58 as it seeks $3.57 all-time high.
Coinglass data shows approximately $34 million in liquidations in the previous 24 hours as XRP fell 11%. $25.37 million from long positions and $8.75 million from shorts were liquidated.
After falling below $2.58 on December 3, XRP has failed to recover, indicating sellers at the level.
If the slide continues, $1.96 near the 50-day SMA may provide support.
A large volume move over $2.58 might push XRP to the top border of a major rectangle channel at $3.57, setting a new all-time high.
The RSI momentum indicator is falling and testing its midline, indicating fading bullish momentum.