The crypto market has eased its recent rally, with Bitcoin now trading above $122k per coin. However, XRP continues to struggle after failing to break above the $3.0 psychological mark earlier this week.
Ripple’s native coin is now struggling to stay above a short-term support, with declining futures open interest making it tough for it to embark on a rally at the moment.
Early profit booking alongside changing market dynamics has also contributed to XRP’s current price action. Traders will be watching key support and resistance zones to determine the next course of action.
XRP struggles to hold the $2.82 support amid a weak derivatives market
XRP has been one of the worst performers among the top 10 cryptocurrencies in the last few days. While BTC, ETH, BNB, and SOL rallied higher, XRP has struggled to move past a key psychological area.
BNB has flipped XRP to become the third-largest cryptocurrency thanks to its rally over the last few days.
The poor performance comes as retail interest in the coin remains shaky. XRP’s futures Open Interest (OI) averages at $8.85 billion after crossing the $9 billion mark on Tuesday
Retail interest remains shaky as evidenced by the futures Open Interest (OI) averaging at $8.85 billion after crossing the $9 billion mark on Tuesday. According to CoinGlass, most traders, especially those holding long positions, are experiencing losses as liquidations persist.
Over $21 million worth of XRP long positions were wiped out on Wednesday, with short traders losing only $2 million. Thus, indicating that leveraged traders were anticipating a sustained breakout above the $3.00 level, but XRP continues to disappoint.
XRP could dip below $2.70 as bearish PA persists
The XRP/USD 4-hour chart is bullish and efficient as Ripple holds its price just around the 100-day Exponential Moving Average (EMA) of $2.85.
Bulls are striving to push it above $3.0, but bears continue to control the market at the moment. At press time, XRP is trading at $2.83.
The Relative Strength Index (RSI) of 39 is below the neutral 50, highlighting a bearish momentum. For XRP to hit $3.0 and surge higher, the RSI will need to break out into the bullish region.
The MACD lines also crossed into the bearish zone over the weekend, suggesting that sellers are currently in control of the market. XRP would need to overcome the first major resistance at $2.92 in the near term if it intends to rally higher.
However, bullish expectations aren’t high at the moment as XRP’s correction could continue to the next key support at $2.70, last tested in late September.
Failure to protect the $2.70 resistance could see XRP drop lower towards the 200-day EMA at $2.63.
The July high of $3.66 remains a medium-term target, with only a push above the $3.1 resistance level bringing it into focus.
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