Traders Panic as XRP Takes a Dive: Is the End Near? 😱

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What to know:

  • Ah, the sweet scent of optimism! Net inflows to spot XRP centralized exchanges turned positive early Thursday after a rather dreary spell of outflows. It seems our dear token is back in the limelight, following a record-breaking month for its DEX. Who knew it had such a flair for drama?
  • But alas, XRP is trading below key support levels, with immediate resistance at $2.49 and a more formidable wall around $2.60. It’s like trying to climb a mountain with a broken leg. Good luck with that!

In a twist worthy of a soap opera, over $15 million in XRP flowed to centralized exchanges on Thursday, led by deposits to Bybit and Kraken. Coinglass data shows that spot inflows to exchanges may signal an intention to sell tokens on the open market. So much for a rally; it seems the party is over before it even began!

Meanwhile, in the perpetual futures markets, the 8-hour funding rates for XRP stood at a thrilling -0.0065% as of Thursday morning. This implies a bias for short positions, which profit from price drops. Notably, XRP’s funding rates are more negative than those of ETH and BTC. It’s like being the least popular kid in school—nobody wants to play with you!

Negative funding rates mean that traders holding short positions are willing to pay a small fee to those with long positions to keep their bearish bets open. It’s a lovely little arrangement, isn’t it? A bit like paying for the privilege of being miserable.

XRP below key averages

In a rather unfortunate turn of events, XRP trades below several key moving averages. The 10-day exponential moving average (EMA) is at $2.84, and the 21-day EMA is at $2.88. Trading below these moving averages suggests a bearish short-term outlook. It’s like being stuck in a traffic jam with no end in sight.

However, the 100-day simple moving average (SMA) is just above $2, and the 200-day SMA is at $1.30, both below the current price, indicating a bullish longer-term trend. Moving averages help identify trends by smoothing out price data, much like how a good cup of tea can smooth out a rough day.

Meanwhile, immediate resistance at $2.49, followed by the $2.60 level. A move past these levels would revive the bullish outlook, setting the stage for a run to the $3 mark, which it breached in January for the first time since 2018. Fingers crossed, everyone!

XRP’s 14-day relative strength index (RSI)—which measures the magnitude of price changes—was just over 36 in Asian hours, placing it in the neutral zone. Traditionally, RSI values above 70 indicate overbought conditions, while values below 30 suggest oversold conditions. An RSI around 50 is considered neutral. So, it’s like being neither here nor there—just hanging out in limbo!

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2025-02-06 11:38