⚠️ 𝗥𝗶𝗽𝗽𝗹𝗲’𝘀 𝗫𝗥𝗣 𝗙𝗮𝗰𝗲𝘀 𝗥𝗶𝘀𝗸 𝗼𝗳 𝗦𝘁𝗲𝗲𝗽𝗲𝗿 𝗣𝗿𝗶𝗰𝗲 𝗖𝗼𝗿𝗿𝗲𝗰𝘁𝗶𝗼𝗻
Ripple (XRP) price recovery rally largely depends on the broader crypto market and the investors’ behavior.
However, neither party favors a price rise, which could cause considerable damage to XRP holders.
🔺 𝗥𝗶𝗽𝗽𝗹𝗲 𝗜𝗻𝘃𝗲𝘀𝘁𝗼𝗿𝘀 𝗧𝗮𝗸𝗲 𝗮 𝗦𝘁𝗲𝗽 𝗕𝗮𝗰𝗸
XRP price attempts to move upward, but by the looks of it, this effort will be thwarted. This is because Ripple is noting bearishness at the hands of its investors, particularly traders.
Bearish bets against XRP have increased in the futures market, which is evident from the funding rate.
The funding rate in cryptocurrency futures trading is the fee paid or received by traders holding leveraged positions overnight. Market conditions determine it and serve to balance the market between long and short positions. Generally, positive funding rates suggest the dominance of long contracts, whereas negative rates hint at short contracts’ taking the preference.
🔺 𝗫𝗥𝗣 𝗶𝘀 𝘄𝗶𝘁𝗻𝗲𝘀𝘀𝗶𝗻𝗴 𝗻𝗲𝗴𝗮𝘁𝗶𝘃𝗲 𝗳𝘂𝗻𝗱𝗶𝗻𝗴 𝗿𝗮𝘁𝗲𝘀, 𝘄𝗵𝗶𝗰𝗵 𝘀𝘂𝗴𝗴𝗲𝘀𝘁𝘀 𝘁𝗿𝗮𝗱𝗲𝗿𝘀 𝗮𝗿𝗲 𝗯𝗲𝘁𝘁𝗶𝗻𝗴 𝗼𝗻 𝗮 𝗽𝗿𝗶𝗰𝗲 𝗱𝗲𝗰𝗹𝗶𝗻𝗲.
At the same time, the broader market is also exhibiting bearishness, as can be seen in the Relative Strength Index (RSI). The RSI is a momentum oscillator that measures the speed and change of price movement. It is used to identify overbought or oversold conditions in an asset.
Given that XRP is struggling to secure the neutral line at 50 as support, a bearish outcome seems rather likely.
