- XRP declined over the last 24 hours and on the weekly charts too
- Market sentiment has been lower, compared to other major assets
While the broader cryptocurrency market has seen a notable surge, XRP has remained largely stagnant. In fact, over the past week, the altcoin recorded a slight decline in value, compounding a flat performance over the last 24 hours.
This lack of momentum, coupled with shifting funding rates, has led to speculations about the near-term direction of XRP.
XRP’s performance falls short of market rally
The cryptocurrency market’s latest upswing, largely led by Bitcoin’s push towards new all-time highs, has seen most altcoins riding the bullish wave. However, XRP stands out as an exception, or one of the exceptions.
At the time of writing, XRP had registered a modest decline on both its daily and weekly performance metrics, marking it as one of the few major assets moving against the trend. This lackluster performance has puzzled investors, considering the market’s general enthusiasm.
XRP’s decline has placed it in the same category as Toncoin, which also failed to gain traction amidst the market rally. The broader market’s rally has traditionally had a cascading effect on altcoins. Alas, this time, XRP decoupled from the rest.
Funding rates reflect a shifting sentiment
Analyzing funding rates for XRP across various exchanges offers us some insights into the sentiment within the Futures market. Funding rates have seen major shifts lately, indicating that traders might be adjusting their positions based on changing market outlooks.
A high positive funding rate typically means bullish sentiment, as traders are willing to pay a premium to hold long positions. Conversely, a drop or shift in funding rates is often a sign of cooling enthusiasm or a shift towards bearish positioning.
Source: Glassnode
In XRP’s case, Glassnode data revealed a move towards more neutral or slightly negative funding rates.
This suggested that the optimism fueling other assets in the crypto market might not be as strong for XRP. This divergence can be interpreted to highlight XRP’s current detachment from the broader market’s bullish trend.
Potential support levels?
An analysis of the altcoin’s price chart revealed that it has been consolidating around the $0.52-level on the charts.
This level was below the 50-day and 200-day moving averages, which were around $0.56. Simply put, significant resistances are currently holding XRP back, with bearish sentiment taking hold of the altcoin’s market.
Source: TradingView
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The Relative Strength Index (RSI), hovering near 44, indicated that XRP was not in oversold or overbought territory. However, it showed some weakness as it trended closer to the oversold range.
This level could act as a support zone, where buyers might step in if they perceive the asset as undervalued. However, the need for significant momentum on the RSI suggested that buyers remain hesitant, possibly waiting for stronger market catalysts.
