XRP Price Eyes a Rebound at $2.41: Is $3.70 Visible on Bullish Radars?

As Bitcoin fluctuates near the $96,000 mark, XRP, the fifth-largest cryptocurrency, is trading at $2.41. With a market cap of $139 billion, XRP price trend is aiming for a bullish comeback.

In the last 24 hours, the XRP price is down by 2.72%, while registering a 4.74% drop over the past seven days. The recent downturn has brought XRP to a crucial support level, hinting at a potential bullish reversal.

XRP Price Hits Local Support Trendline

In the daily chart, the XRP price trend since December 2023 has been forming a rising channel pattern. Within the channel, the XRP price has recently taken a negative shift to test its local support trendline.

XRP is forming a series of Doji candles near the trendline, signaling a potential price reversal. Currently, XRP has registered a 24-hour low of $2.38 and is teasing a bullish comeback towards the $2.50 psychological mark.

If the price holds above the rising channel’s support, XRP price trend could set the stage for a significant bullish recovery.

Indicators Signal a Bullish Reversal in XRP Prices

Amid the possibility of a bullish comeback, technical indicators are taking an optimistic stand. The MACD momentum indicator is teasing a potential bullish crossover, amid the declining bearish histograms.

Furthermore, the daily RSI line has avoided contact with the oversold boundary and is now on a gradual recovery trend toward the halfway level. Hence, the momentum indicators support the possibility of a bullish comeback.

A bullish RSI recovery alongside an improving MACD crossover could strengthen buyers’ confidence and lead to renewed upward momentum.

Derivatives Market and Institutional Sentiment on XRP

Amid the chances of a bullish reversal, speculations in the derivatives market are on the rise. Despite the recent drop of 5.33% in open interest, the XRP OI still stands at $3.53 billion.

This reveals a large fund of crypto traders betting on XRP’s price movement. In the past 24 hours, the long-to-short ratio of XRP has remained significantly bearish.

However, the funding rate has significantly improved. The OI-weighted funding rate has increased to 0.0077%, reflecting the increased willingness of traders to pay a premium to hold long positions.

An increase in the funding rate signals growing confidence in long positions, which could fuel a strong upside move if buying momentum builds.

Will XRP Price Hit $3.70?

Amid the possibility of a bullish comeback, Fibonacci levels paint the immediate resistance at $2.58, aligning with the 23.60% Fibonacci level. On a positive note, the 50% Fibonacci retracement level at $3.17 suggests a potential 30% upside move.

Meanwhile, the rising channel pattern suggests a bullish trend targeting the upper trendline near $3.70. This promotes the bullish potential of more than 50%.

On the flip side, the crucial support levels for XRP are at $2.00 psychological support and $1.76 support level. If XRP price fails to hold key support, a drop below $2.00 could expose the asset to deeper retracements, increasing bearish dominance.