While the broader crypto market experiences a significant uptick, XRP is notably stagnant. Over the past week, this altcoin has seen a slight decrease in value, continuing its flat performance in the last 24 hours.
The lack of movement, combined with changing funding rates, has sparked discussions about the potential near-future trajectory of XRP.
XRP’s Lackluster Performance Amid Overall Market Growth
Despite the recent bullish trend in the crypto market driven by Bitcoin’s surge to new highs, most altcoins have been benefiting. However, XRP is an outlier, showing a decline in both daily and weekly performances compared to other major assets.
This underwhelming performance has left investors puzzled amidst the general market enthusiasm.
Additionally, XRP has joined Toncoin in failing to capitalize on the market rally, a phenomenon where altcoins typically follow Bitcoin’s lead. Surprisingly, XRP has broken away from this traditional pattern.
Changing Sentiment Reflected in Funding Rates
Examining funding rates for XRP across different exchanges provides insights into Futures market sentiment. Recent shifts in funding rates suggest traders might be readjusting their positions in response to evolving market conditions.
A high positive funding rate indicates bullish sentiment, with traders willing to pay more to maintain long positions. Conversely, a drop or change in funding rates signals diminishing enthusiasm or a shift towards bearish sentiment.
Recent data from Glassnode indicates a move towards neutral or slightly negative funding rates for XRP. This divergence suggests that the optimism surrounding other assets may not be as strong for XRP, showcasing its current disconnection from the broader market’s bullish trend.
Possible Support Levels for XRP
An analysis of XRP’s price chart reveals consolidation around the $0.52 mark, below the 50-day and 200-day moving averages near $0.56. This signifies significant resistance levels hindering XRP’s progress, with a prevailing bearish sentiment in the market.
The Relative Strength Index (RSI) hovering at around 44 indicates XRP is not oversold or overbought, but it shows signs of weakness trending towards the oversold territory. This range could serve as a potential support zone where buyers might intervene if they perceive XRP as undervalued. Yet, substantial RSI momentum is required to attract hesitant buyers who may be awaiting stronger market catalysts.