TLDR
- XRP currently trading around $2.26-$2.28, holding above key technical support at $2.20
- Descending channel pattern suggests potential breakout that could drive price toward $3
- Recently approved futures XRP ETFs may provide bullish momentum
- MACD indicator shows slowing upward momentum as April ends
- ProShares confirmed no XRP spot ETF launch on April 30, contrary to earlier speculation
XRP (XRP) has been showing resilience in recent trading sessions, maintaining its position above critical support levels despite mixed signals from technical indicators. The cryptocurrency, currently trading at approximately $2.26, has recorded three consecutive daily green candles before experiencing a slight pullback of over 1% on Tuesday.
The broader cryptocurrency market appears stable, with Bitcoin holding above the $94,000 mark. This stability provides a supportive backdrop for XRP’s price action as it consolidates recent gains.
Technical analysis shows XRP trading within a descending channel pattern. However, since bouncing from its yearly low of $1.61 on April 7, the digital asset has displayed increasing potential for a substantial rally.
Key support for XRP lies at the 50-day and 100-day Exponential Moving Averages (EMAs), positioned at $2.20 and $2.22 respectively. These levels have proven reliable during recent pullbacks and could serve as entry points for traders looking to buy dips.
The token currently trades above its 50-day, 100-day, and 200-day EMAs, which are all sloping upward. This alignment of moving averages typically confirms positive momentum in the market.
Technical Indicators Point to Potential Consolidation
On the daily chart, the Relative Strength Index (RSI) sits at a neutral 58.11, suggesting room for movement in either direction. However, as long as the RSI remains above the midline of 50, the bulls may maintain their advantage.
The Moving Average Convergence Divergence (MACD) indicator presents a more cautious outlook. While the MACD line remains above the signal line—typically a bullish sign—the histogram is shrinking, indicating weakening upward momentum.
Bollinger Bands analysis suggests XRP is trading near the upper band, which often signals overbought conditions. The tightening of these bands may indicate an upcoming period of volatility, potentially leading to either a breakdown or breakout.
For XRP to continue its upward trajectory, it must first overcome resistance at $2.40. Beyond this level, supply zones at $2.80 and $3.00 could present challenges to further price appreciation.
Market Factors Influencing XRP Price
Several external factors could influence XRP’s price in the coming weeks. Ongoing settlement negotiations between Ripple and the Securities and Exchange Commission (SEC) remain a focal point for investors. Earlier this month, both parties were granted a temporary stay of the appeals process to facilitate these discussions.
The approval of futures XRP Exchange-Traded Funds (ETFs) has generated positive sentiment around the token. However, contrary to some reports, ProShares has confirmed that no spot XRP ETF will launch on April 30.
A Bloomberg ETF analyst and ProShares spokesperson clarified that while a launch is expected in the short to medium term, no official date has been set. The upcoming ProShares ETFs will offer exposure to XRP through futures contracts, including leveraged and inverse options.
Derivatives data from Coinglass shows a slight increase in Open Interest of 0.09% to $4 billion, suggesting new positions are being opened. However, the long/short ratio of 0.9559 leans toward shorts rather than longs, indicating waning confidence among traders.
Over $350,000 was liquidated in long positions compared to approximately $59,000 in short positions in the past four hours. This imbalance suggests some bulls are being shaken out of the market.
If XRP fails to maintain its current support levels, it could extend its downward movement to test the 200-day EMA at $1.98. A deeper correction to $1.80 remains possible if overall crypto market sentiment turns bearish.
As April draws to a close, traders are closely monitoring XRP’s ability to hold above the crucial $2.20 support level, which may determine its next major move.
