XRP edged higher on Thursday, extending its recovery after successfully defending the $1.0 support level earlier in the week. The token traded near $1.11, up less than 1% on the day, as improving derivatives data pointed to renewed investor interest.
According to Coinglass, XRP futures open interest (OI) rose to approximately $2.4 billion on Thursday, recovering from a dip to $2.3 billion earlier in the week. The combination of rising prices and increasing OI typically signals that fresh capital is entering the market, rather than existing traders merely closing positions. This trend often supports continued price recovery.
Market sentiment in perpetual futures markets also improved. XRP recorded positive funding rates starting Tuesday, indicating that long-position traders are once again willing to pay a premium to maintain bullish bets. Positive funding rates generally reflect growing confidence among derivatives traders and often accompany improving short-term price momentum.
Despite these bullish derivatives signals, on-chain data from CryptoQuant presents a more balanced picture. Spot and futures markets remain relatively stable, with whale activity appearing neutral. This equilibrium suggests that a continued recovery is possible if broader market sentiment remains favorable, but it does not guarantee an immediate breakout.
From a technical perspective, XRP continues to trade below several key moving averages, keeping the broader outlook cautiously bearish. The token remains beneath the 50-day exponential moving average (EMA) at $1.155, the 100-day EMA at $1.252, and the 200-day EMA at $1.456. These levels have capped upside attempts and define the prevailing downtrend.
However, momentum indicators are showing signs of stabilization. The Relative Strength Index (RSI) is hovering just above the neutral 50 level, suggesting a balance between buyers and sellers. Meanwhile, the Moving Average Convergence Divergence (MACD) has turned slightly positive, indicating that downside momentum is weakening, even though a confirmed bullish reversal has yet to materialize.
If buyers maintain control, XRP could test the first major resistance at $1.155 (50-day EMA), followed by $1.252 (100-day EMA). A daily close above these levels could open the door to the $1.300 psychological mark and the 200-day EMA at $1.456. A decisive break above the 50-day EMA would improve the short-term outlook and increase the likelihood of a stronger recovery.
On the downside, immediate support lies near the lower boundary of XRP's descending channel around $1.027. Holding above this level would preserve the current recovery structure. However, a breakdown below channel support could reinforce the broader bearish trend and expose XRP to additional losses.
For broader market context, Bitcoin Tests $65K Resistance as Inflation Data Boosts Risk Appetite and Ethereum Holds Above $1,900 as Staking Revenue Surges; Key Resistance at $1,950 highlight similar resistance battles in major cryptocurrencies. Meanwhile, Bonk Surges 8% on CPI Relief: Can Bulls Clear the $0.0000040 Hurdle? shows how altcoins are responding to macroeconomic tailwinds.
Improving derivatives activity and positive funding rates suggest investor confidence is gradually returning to XRP. While technical indicators show signs of stabilizing, the token must overcome several major resistance levels before confirming a sustained bullish reversal.
This article is for informational purposes only and does not constitute financial advice.
