XRP Poised for Surge to $5 After Retesting Critical $2.96 Support

Key Insights:

• XRP’s ability to hold $2.96 support is key to a potential surge toward $5.
• RSI divergence indicates strength, while market sentiment suggests a bullish outlook for XRP.
• Funding rate spike signals growing speculative interest, hinting at XRP’s upward movement.

XRP, one of the most well-known cryptocurrencies, has recently made a return to a key support level of $2.96. This level has drawn attention from both traders and analysts due to its critical role in determining the future direction of XRP’s price.

According to CasiTrades, the $2.96 level serves as a crucial support zone for XRP, and its significance extends beyond the short-term price movement. As the cryptocurrency market is highly reactive to technical indicators, XRP’s ability to hold above this support zone will play a key role in shaping investor sentiment.

Analyst CasiTrades says if XRP successfully maintains its position at or above $2.96, this could signal that the recent pullback is just a normal retracement in a broader uptrend. RSI is trying to print a bullish divergence on small timeframes, suggesting potential strength for XRP at this support level.

Potential for a Surge to $5

Analyst CryptoBull analyzes that $2.96 support is crucial for XRP’s trajectory. A successful retest of this level would likely open the door for further gains. The next target is $3.50, followed by a potential surge toward the $5 mark. 

However, if the $2.96 support fails to hold, it could signal a shift in momentum that might alter the market’s outlook for XRP in the near future. The broader market dynamics will play a key role in determining whether this move materializes. According to an analyst, the XRP price will explode and rise so quickly that the vast majority will be left behind.

At the time of writing, XRP’s price stands at $2.96, down by 2.73% over the last 24 hours. Despite this, the overall market sentiment remains cautiously optimistic, with traders eagerly waiting to see if the price holds at this key support level.

Market Dynamics and Speculative Interest

Based on Coinglass, alongside price action, the funding rate of XRP has been of interest to market participants. The fluctuations in XRP’s funding rate, particularly the rise seen in mid-July, reflect growing speculative interest and market confidence.

Notably, the funding rate surged above 0.05%, coinciding with a sharp increase in XRP’s price. Since then, the funding rate has cooled off, but this shift suggests that investor sentiment is shifting, possibly signaling an upcoming move.