XRP extended its recovery on Thursday, trading above $1.32 after breaking above the upper boundary of a falling channel pattern. Improving derivatives sentiment and some supportive technical signals pointed to a potential weakening of selling pressure, though several key moving averages remain overhead.
According to data from CoinGlass, funding rates for XRP turned positive and stayed there, suggesting leveraged longs were attracting demand in the perpetual futures market. Even so, broader positioning remained mixed, keeping investors focused on whether the breakout can hold and whether XRP can reclaim major resistance levels.
Key takeaways
- Price move: XRP pushed higher and was trading above $1.32 after a breakout from a falling channel.
- Catalyst: Derivatives data showed funding rates moved into positive territory, indicating improved appetite for long exposure.
- Technical setup: The daily chart showed momentum improving, with RSI at 51 and a MACD positive crossover, but XRP remains below major moving averages.
- Implication: A move back above the 100-day, 50-day, and 200-day exponential moving averages would be needed to confirm a more sustained reversal; otherwise, gains may face renewed selling near resistance.
What drove the move
The derivatives market provided the clearest near-term signal. According to CoinGlass, XRP’s funding rate moved into positive territory on October 30 and remained positive through Thursday. On Thursday, XRP’s funding rate stood at 0.0103%. When funding is positive, traders holding long positions typically pay those holding short positions in perpetual futures—often interpreted as a sign that bullish exposure is becoming more actively sought.
That shift helped reinforce the market’s read that the prior downturn was losing momentum. However, the report also noted that overall derivatives positioning was not fully bullish. CoinGlass data showed XRP’s long-to-short ratio was 0.97 on Thursday, with readings below 1 indicating that short positions still outnumber long positions in the metric being tracked.
For traders, that combination—positive funding but a long-to-short ratio still under 1—suggests improving leverage demand, while bearish positioning has not entirely disappeared. The balance can matter around technical resistance: if price stalls near key moving averages, shorts may increase and cap upside.
Market reaction and technical signals
Technically, XRP’s daily chart showed a constructive development after the cryptocurrency moved above the upper trendline of a falling channel. Breakouts above the boundary of such patterns are commonly viewed as evidence that bearish pressure is easing and that buyers are challenging the prevailing downtrend.
Still, the cryptocurrency was trading below several major exponential moving averages, which typically act as resistance zones during recoveries. The 100-day EMA was at $1.323, the 50-day EMA at $1.335, and the 200-day EMA at $1.378. Because all three levels were above the current price, the path higher could involve repeated tests if sellers defend those averages.
Momentum indicators pointed to an improving but not fully confirmed reversal. The Relative Strength Index (RSI) was at 51 on the daily chart, a level above 50 that generally aligns with weakening bearish momentum as buying pressure strengthens. The Moving Average Convergence Divergence (MACD) also showed a positive crossover, with the main line moving slightly above zero, suggesting short-term momentum had improved relative to the recent trend.
Levels investors are watching
Investors appear likely to focus first on the 100-day EMA near $1.323. A daily close above that area could encourage further buying interest and shift attention to the 50-day EMA at $1.335. Beyond that, the 200-day EMA at $1.378 is the next major hurdle. Reclaiming all three moving averages would strengthen the case that the channel breakout is developing into a more convincing trend reversal.
If XRP clears those overhead levels, the next resistance zone highlighted was at $1.540, followed by $1.900.
On the downside, immediate support was identified around $1.265, near the previously broken upper boundary of the falling channel. A pullback toward that area followed by a defense could help confirm the breakout structure. A daily close below $1.265, by contrast, would weaken the recovery outlook and raise the probability of renewed selling. Further downside levels were cited at $1.160 and the psychological $1.000 threshold.
Bigger picture
The recovery attempt in XRP is being supported by a combination of a technical channel breakout and improving derivatives pricing signals, but the market still faces a key confirmation test: sustained trading above major moving averages. With funding positive yet the long-to-short ratio below 1, investors may continue to watch whether bullish follow-through is strong enough to override overhead resistance.
Going forward, traders are likely to monitor XRP’s ability to hold above $1.265 on pullbacks and to build daily closes above the $1.323–$1.335 zone. Any additional deterioration in derivatives positioning or renewed weakness in momentum indicators could quickly change the tone of the breakout narrative.
