XRP holds support at $3 amid a bearish derivative market: check forecast

XRP, the native coin of the Ripple blockchain, lost nearly 4% of its value in the last 24 hours as the broader crypto market underwent a correction. Bitcoin has dropped below $119K while Ether maintains its price above $4,200. The bearish performance comes ahead of this week’s crucial inflation data. XRP has held its price at a crucial support region, which could serve as a springboard for a possible breakout. XRP holds price above $3 XRP is currently trading at $3.15 after losing 3.6% of its value in the last 24 hours. The bearish performance is evident in the negative futures Open Interest (OI) data during that period. Data obtained from CoinGlass revealed that XRP’s OI averaged $7.9 billion, down 9% from the $8.5 billion recorded over the weekend. A subsequent decrease in the futures weighted funding rates to $0.0084% from 0.0108% over the last 24 hours suggests that more traders are leveraging short positions in XRP. The decrease in trading volume to $7.9 billion as OI and funding rates dip points to shrinking market activity. Despite the profit taking, XRP has held its price above the $3 support level. Traders are focusing their attention on the US inflation data coming up later today. In an email with Invezz, XBTO’s Chief Investment Officer, Javier Rodriguez-Alarcón – formerly of BlackRock and JPMorgan – stated that the CPI and PPI data this week would be crucial in the market performance. He added that, The week ahead brings two key US inflation developments: the Consumer Price Index (CPI) on Tuesday, which measures household price changes, and the Producer Price Index (PPI) on Thursday, which tracks wholesale price changes for businesses. These reports are key in shaping expectations for Federal Reserve policy. Recent market data now shows that traders are pricing in approximately an 89% chance of a 25 basis point rate cut by the Federal Reserve at the upcoming September FOMC meeting. If inflation comes in higher than expected, investor appetite for risk could weaken and the rally could stall. XRP targets $3.66 high if support holds The XRP/USD 4-hour chart remains bullish despite the coin losing nearly 4% of its value in the last 24 hours. The $3 support has so far held and could serve as the springboard for XRP to rally higher in the near term. The RSI of 50 suggests that the market is currently neutral while the MACD lines remain within the positive territory. If the $3 support holds, XRP could experience a breakout soon that could see its price break above the recent high of $3.66. An extended bullish run would enable XRP to set a new all-time high above $4. However, if the $3 support fails to hold, XRP could retest the $2.39 support before falling below $2 on heavy selling pressure. The $3 and $2.39 support levels could absorb the selling pressure and prevent XRP from recording huge losses. The post XRP holds support at $3 amid a bearish derivative market: check forecast appeared first on Invezz

Source: Invezz