XRP bulls target a break above $3.00, reflecting strong market sentiment, while futures data suggests growing retail demand. Exchange reserves, however, indicate that some investors may be preparing to sell as the price rises.
Ripple (XRP) trades above $3.00 on Friday as bulls attempt to extend the uptrend toward the record high of $3.66 reached on July 18. The recent price momentum mirrors broader bullish sentiment in the cryptocurrency market, with the Altcoin Season Index climbing to 78, signaling the potential start of the long-anticipated altcoin season.
XRP holds $3.00 as retail demand surges
Interest in XRP has grown steadily this week, with futures Open Interest (OI) averaging $8.51 billion, up from $7.37 billion recorded last Sunday. While OI remains below the July peak of $10.94 billion, the upward trend reflects rising risk-on sentiment as traders accumulate long positions.
The futures-weighted funding rate is also climbing, averaging 0.0107% on Friday, further confirming positive market sentiment. Rising OI and funding rates indicate that traders are increasingly leveraging long positions, anticipating short-term price gains.
Despite strong demand, XRP exchange reserves have risen, with Binance balances currently at 3.66 billion coins, a 23% increase from approximately 2.8 billion on August 31. Increasing reserves often point to potential selling pressure, as traders move tokens onto exchanges to trade or liquidate holdings. While this may increase supply, an immediate price correction is not guaranteed, making it a key on-chain metric for risk-conscious investors.
technical outlook: XRP eyes next resistance at $3.35
XRP is trading above $3.00 on Friday, with a minor pullback from an intraday high of $3.07 suggesting some profit-taking. The Moving Average Convergence Divergence (MACD) continues to show a buy signal, supporting the bullish case for a breakout toward the next resistance at $3.35, last tested in mid-August.
The Relative Strength Index (RSI) currently sits at 55 and moving sideways, signaling a temporary cooling of bullish momentum. A drop below the midline could extend the pullback below the $3.00 short-term support.
Key support levels include the 50-day Exponential Moving Average (EMA) at $2.92, followed by the 100-day EMA at $2.79 and the 200-day EMA at $2.54, which could absorb selling pressure if the market experiences instability.
