XRP Price Eyes $0.61 amid Bullish Signals from US Fed, Grayscale

XRP Price Analysis

XRP price briefly grazed the $0.58 mark on Aug 14, now up 6.60% in the last 3 days, a rare derivatives market signal suggest spot traders are now buying XRP aggressively, sparking hopes of a $0.60 breakout in the days ahead.

XRP Price Battling $0.60 Resistance

XRP has been navigating a challenging landscape, both within the broader crypto market and its own recent events. Last week, following the US SEC’s lenient decision to hand Ripple a $125 million fine, XRP experienced an initial 48.3% surge. However, profit-taking ensued, leading to a 15% decline from $0.64 to $0.55 between August 9 and August 12.

However, amid the turbulence, crypto traders received a major boost from the latest US CPI report, as slowing inflation hints at possible rate cuts in September.

In the same vein, Grayscale’s recently launched cryptocurrency trusts, has booste market demand, while the dovish US CPI data also increases the likely hood of imminent rate cut, which could spur additioal capital inflows toward in the coming weeks.

Consequently in the last 3 days XRP managed to recover, supported by optimism surrounding Ripple’s regulatory outcomes and renewed market interest. XRP price, responding to these catalysts, has reversed some of its recent losses, rallying 6.6% between August 11 and the time of writing on August 14.

Spot Traders Buying XRP Aggressively

Spot traders appear to be driving XRP’s current bullish momentum. Following the recent bullish reversal, XRP is now poised for further upward movement. A key metric to watch in this context is the funding rate, which can provide insights into market dynamics, especially around specific events or price movements.

The funding rate represents the cost paid by one side of the market to the other to hold their positions in perpetual futures contracts. It’s an indicator of market sentiment, with positive rates generally signaling bullish sentiment, while negative rates suggest bearish sentiment.

Between August 11 and August 15, XRP’s funding rate dropped from 0.0051% to 0.00039%. Despite this decrease, the XRP price increased by 6.6% during the same period. This divergence suggests that while futures traders are becoming more cautious, spot traders are stepping in, potentially laying the groundwork for a strong upward move.

This current market dynamic is bullish for two main reasons. First, the drop in the funding rate indicates that the cost to maintain long positions is becoming less burdensome, which might attract more buyers. Second, the fact that the price is rising despite a lower funding rate suggests that the underlying demand for XRP is strong, possibly driven by positive news and renewed investor confidence.

XRP Price Forecast: $0.61 Resistance Poses Major Roadblock

Looking ahead, the XRP price faces a significant roadblock at the $0.61 resistance level. The daily chart indicates that the Ichimoku Cloud is providing strong support, with the price currently trading above the Tenkan-Sen (blue line) at $0.5654 and the Kijun-Sen (red line) at $0.5552. This suggests that XRP remains in a bullish phase, as long as it stays above these critical levels.

However, the $0.61 resistance, which aligns with the top of the Ichimoku Cloud, could prove challenging to break. A successful breach above this level could open the door for XRP to test higher levels around $0.65, where further resistance may emerge.

The Coppock Curve, a long-term momentum indicator, has recently started to curve upwards after a significant drop, signaling that a bullish reversal may be in the early stages. As long as XRP maintains its current trajectory and the broader market sentiment remains positive, a breakout above $0.61 could be within reach.

In summary, while XRP faces a tough battle at the $0.61 resistance, the underlying technical indicators point towards a potential continuation of the recent bullish trend. Key support levels to watch are $0.5654 and $0.5552, with a focus on the $0.61 resistance as the next critical test.