Ripple’s XRP rose modestly on Thursday, extending a rebound after traders defended a key support area earlier in the week. Price action has been accompanied by improving derivatives signals, though XRP still faces multiple technical resistance levels that will determine whether the recovery can broaden.
Key takeaways
- Price move: XRP was up less than 1% on Thursday and has gained more than 1% over the week.
- Catalyst: Derivatives data showed rising XRP futures open interest, and funding rates turned positive earlier in the week.
- What it implies: Market structure suggests fresh participation rather than only position unwinds, supporting a potential continuation of the rebound.
- Key risk: XRP remains below key moving averages, leaving upside attempts capped until key resistance breaks.
What drove the move
Derivatives activity has provided the clearest near-term signal. According to Coinglass, XRP futures open interest rose to approximately $2.4 billion on Thursday after slipping to around $2.3 billion earlier in the week. In general, rising open interest alongside a higher price can indicate new leverage entering the market rather than traders simply closing existing positions.
The report also pointed to improving sentiment in perpetual futures markets. Data referenced in the article showed XRP recorded positive funding rates beginning on Tuesday, a setup that typically reflects growing willingness among long-position traders to pay a premium to maintain bullish exposure.
However, the same coverage cautioned that on-chain signals are less one-sided. According to CryptoQuant data cited in the article, spot and futures positioning looks relatively balanced, with whale activity described as neutral. That balance suggests the rebound could continue, but it may lack the kind of concentrated accumulation that often accelerates sustained breakouts.
Market reaction and technical levels to watch
On Thursday, XRP traded around $1.11 after rebounding from support near the upper boundary of a descending parallel channel. Despite the bounce, the article said XRP remains below several key moving averages, which keeps the broader technical picture cautious.
Specifically, XRP is reported to be below:
- 50-day exponential moving average: approximately $1.155
- 100-day exponential moving average: approximately $1.252
- 200-day exponential moving average: approximately $1.456
The near-term momentum indicators, though, suggest bearish pressure is easing. The article said the Relative Strength Index (RSI) is hovering slightly above the neutral 50 level, implying a more even tug-of-war between buyers and sellers. It also cited a Moving Average Convergence Divergence (MACD) reading that has turned slightly positive, signaling weakening downside momentum even though a fully confirmed bullish reversal has not yet emerged.
If buyers keep control, the first major upside test highlighted is near the $1.155 area (the 50-day EMA), followed by a second hurdle around $1.252 (the 100-day EMA). The article further noted that a daily close above these levels could draw attention to the $1.300 psychological mark and potentially the $1.456 zone associated with the 200-day EMA.
On the downside, immediate support is described near $1.027, around the lower boundary of the descending channel. A hold above that level would help preserve the current recovery structure, while a breakdown could reinforce the larger bearish trend and expose XRP to further declines.
What investors may infer from derivatives data
Rising open interest and positive funding rates together typically point to improved leverage demand—often interpreted by traders as a sign that the recovery has attracted new participants. In this case, the combination suggests that the rebound may be gaining traction beyond short-lived covering.
That said, the article emphasized that technical resistance remains the dominant constraint. Even with derivatives improving, XRP still needs to reclaim moving-average levels to shift from a stabilizing bounce to a more durable uptrend. Until that happens, investors may view the current price action as a recovery within a broader downtrend rather than a clear trend reversal.
Bigger picture and what to watch next
With XRP’s near-term signals improving—particularly via futures positioning metrics—the focus now shifts to whether the token can break above the 50-day EMA near $1.155 and hold gains. Traders will likely also watch follow-through in funding rates and open interest: sustained strength in those measures would support the argument for continued participation.
Next, market participants will be looking for additional confirmation from XRP’s technical structure, especially whether daily closes can clear resistance levels, while broader crypto market conditions may further influence whether the recovery extends or fades.
