XRP continued to defend the psychological and technical $2 demand zone.
In a recent report, AMBCrypto noted that Ripple partnered with LMAX to integrate its stablecoin, RLUSD. Moves and partnerships like these help boost adoption, part ofa long-term strategy.
This might not reflect immediately in price action or market sentiment. Another report highlighted the inverse head and shoulders pattern XRP was making on the 1-day timeframe, which could lead to a bullish breakout for the token prices.
Ripple [XRP] witnessed steady outflows from exchanges, a sign of accumulation. The high Long/Short Ratio was a warning to the bulls of potential short-term volatility to force out the overcrowded long side.
Inflows from whales were low, which showed that smart money was not offloading XRP. This was an indication of conviction from whales.
Signs that XRP could be forming a local price bottom
Source: CryptoQuant
In a CryptoQuant Insights post, analyst PelinayPA observed that when Funding Rates turn positive and spike higher, the price tends to see a consolidation and brief pullbacks. This is a result of the cost of maintaining long positions, which is funding, and the possibility of a long squeeze that it entails.
As of press time, the opposite of that was going on while prices remain above the $2 demand zone. These conditions tend to mark local price bottoms.
The lack of excessive market enthusiasm meant any price dips were likely to be shallow. A switch to positive Funding Rates in the coming days could come alongside a bullish XRP price move.
Another user, TopNotchYJ, pointed out that the spot CVD was taker buy dominant.
This indicated aggressive buying pressure in the 90-day Spot CVD metric. The Spot Average Order Size witnessed big whale orders in recent weeks, as well.
Source: Glassnode
The Cost Basis Distribution Heatmap highlighted the importance of the $1.96-$2.0 area as support. These areas had a high concentration of supply at cost basis. A price drop below $1.96 could trigger deeper bearish sentiment.
On the other hand, the $2.15 area was another zone for bulls to watch out for as a potential resistance. Within the past week, XRP bulls faced rejection at this area.
Final Thoughts
- The funding rates and buyer-dominated spot CVD metrics indicated a higher likelihood of an upward price move for XRP.
- The CBD heatmap showed where the key local support and resistance zones were.
Source: https://ambcrypto.com/xrp-holds-2-support-are-buyers-quietly-taking-control/
