Ripple (XRP) edged higher on Monday, trading between key support at $2.83 and resistance at $2.92. The short-term bullish momentum reflects a subtle recovery in the broader cryptocurrency market, mirrored by Bitcoin (BTC) and Ethereum (ETH) since Friday.
Bulls Eye $3.00 Breakout
If bulls can sustain the uptrend toward the critical $3.00 level, the path of least resistance may remain upward, increasing the chances of a breakout toward the all-time high of $3.66 reached on July 18. Traders, however, should monitor key metrics to assess whether XRP can maintain this momentum or resume the downtrend toward the round-number support at $2.50.
XRP Exchange Reserves Expand
Since early September, XRP holders have transferred significant amounts of the token to exchanges, boosting reserves. CryptoQuant data shows Binance reserves rising 19.4% to 3.6 billion XRP from 2.9 billion XRP. This coincided with the XRP price declining from $3.18 on September 13 to around $2.70 on September 22.
Rising exchange reserves often signal potential selling pressure, reflecting a lack of confidence in sustaining the uptrend. This metric is closely watched as it can precede short-term sell-offs.
Weak Derivatives Activity
Retail interest in XRP has remained relatively muted since mid-July. CoinGlass data shows futures Open Interest (OI) averaging $7.56 billion as of Monday, down from a record high of $10.94 billion on July 22.
Lower or declining OI indicates reduced market participation, limiting short-term price movements. Bearish sentiment may persist if liquidation of long positions continues.
Technical Indicators
XRP currently trades between support from the 100-day Exponential Moving Average (EMA) at $2.83 and resistance from the 50-day EMA at $2.92. Bulls aim to extend the weekend recovery above $3.00 and challenge a descending trendline from the all-time high.
The Relative Strength Index (RSI) has risen to 48, signaling growing bullish momentum. A move above the midline would strengthen the upward path, while traders may look for a bullish MACD crossover as a confirmation to increase exposure.
Key Milestones
Sustained gains above the 50-day EMA at $2.92, followed by a break above the descending trendline and supply zone at $3.18, would support further upside. Conversely, a drop below the 100-day EMA at $2.83 could trigger a downtrend toward near-term support at $2.70 and the 200-day EMA at $2.61.
