- XRP bulls put effort into defending the $2.00 support as the crypto market recovers from tariff-triggered drawdowns.
- Whales embark on a fresh risk-on mode, scooping more XRP tokens ahead of a possible climb to $3.00.
- A MACD buy signal and an uptrending RSI reinforce the bullish momentum on Monday.
- A 2.75% drop in the derivatives' open interest calls for caution among traders and suggests potential downside risks.
Ripple (XRP) price grinds higher and trades at $2.15 during the early European session on Monday. The token sustained a bullish outlook throughout the weekend supported by bullish sentiment from the 90-day tariff suspension in the United States. XRP relies on the immediate $2.00 support to collect more liquidity as whales launch a new buying spree, taking advantage of the recent drawdowns in the crypto market.
XRP whales go on a buying spree as risk-off sentiment fades
Global markets, including crypto, have suffered under heightened liquidity and sustained drawdowns since April 2, when United States (US) President Donald Trump announced reciprocal tariffs. Digital assets like Bitcoin (BTC), Ethereum (ETH), and XRP started recovering mid-last week, as President Trump changed his tune on tariffs, suspending the new policy for 90 days.
However, the President turned the tariff war a notch higher on China, levying the Asian economic giant a 145% duty on goods exported to the US. China, not relenting, retaliated with a 125% duty on United States goods, adding that it would fight to the end.
President Trump made another surprise move on Friday, exempting certain goods, including smartphones, computers, and devices like semiconductors, from his reciprocal tariffs, according to a CNBC article.
The cryptocurrency market continued to trade positively over the weekend despite President Trump clarifying that exemptions are not permanent. Moreover, he said goods will still attract the existing 20% fentanyl tariffs.
XRP whales responded positively to the tariff news from the middle of last week, increasing their holdings. Per Santiment's data, wallets with between 1 million and 10 million XRP have grown to hold 9.27% of the total supply. Similarly, addresses between 10 million and 100 million accounted for 11.61% of the total supply. These wallets' gradual but steady growth hints at rising risk appetite among the whales. If the uptake of XRP continues, bullish momentum could soar, lifting XRP price towards the $3.00 level.
XRP price on the cusp of a breakout
XRP holds between two key levels highlighted by the 200-day Exponential Moving Average (EMA) at $1.95 as support and the short-term confluence resistance showcased by the 50-day EMA and the 100-day EMA at $2.25.
A buy signal from the Moving Average Convergence Divergence (MACD) indicator further affirms the bullish outlook. As the MACD recovers toward the mean line and histograms flip green, the path of the least resistance clears, targeting previously tested resistance levels at $2.75 and $3.00.
The Relative Strength Index (RSI) indicator, holding neutral at 49.95 while trending higher, upholds the bullish outlook. Traders could seek more exposure as the RSI steadies into the upper neutral half. Note that breaching the descending trendline resistance in the RSI indicator would further reinforce the bullish grip.
XRP/USD daily chart
On the other hand, traders must be cautious not to overexpose their capital, considering the drop in the derivatives’ Open Interest (OI) by 2.75% in the last 24 hours to $3.29 billion. A 40% drop in volume to $9.99 billion in the same timeframe could mean that existing positions are closed significantly, dampening bullish momentum.
XRP derivatives data | Source: Coinglass
Liquidations hit $13.86 million in the last 24 hours, with long positions being the hardest hit at $8.2 million amid $5.66 million in short positions. As the price increases, long position holders may choose to take profit, reducing their exposure. Moreover, a decline in OI suggests that traders lack the conviction to open new positions.
Cryptocurrency prices FAQs
Token launches influence demand and adoption among market participants. Listings on crypto exchanges deepen the liquidity for an asset and add new participants to an asset’s network. This is typically bullish for a digital asset.
A hack is an event in which an attacker captures a large volume of the asset from a DeFi bridge or hot wallet of an exchange or any other crypto platform via exploits, bugs or other methods. The exploiter then transfers these tokens out of the exchange platforms to ultimately sell or swap the assets for other cryptocurrencies or stablecoins. Such events often involve an en masse panic triggering a sell-off in the affected assets.
Macroeconomic events like the US Federal Reserve’s decision on interest rates influence crypto assets mainly through the direct impact they have on the US Dollar. An increase in interest rate typically negatively influences Bitcoin and altcoin prices, and vice versa. If the US Dollar index declines, risk assets and associated leverage for trading gets cheaper, in turn driving crypto prices higher.
Halvings are typically considered bullish events as they slash the block reward in half for miners, constricting the supply of the asset. At consistent demand if the supply reduces, the asset’s price climbs.
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