The crypto market is facing slight selling pressure in the early Sunday session, with several crypto assets, including XRP, trading in red. In the last 24 hours, $138 million has been liquidated in the crypto derivatives market. Interestingly, shorts accounted for the majority of this figure, totaling $90 million.
Amid the current uncertainty in the market, XRP stands out with a surprising twist: Its funding rate is currently positive, according to CoinGlass data, signaling a potentially bullish undertone.
A positive funding rate signals that traders are generally optimistic about the future price of the underlying asset, which drives up demand for long positions.
In this scenario, long positions (buying contracts) are more prevalent, and the contract price is higher than the spot price of the underlying asset. This means traders with long holdings pay a fee to those with short positions.
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According to CoinGlass data, the funding rate for the XRP/USD pair on Binance was 0.0031%. At the time of writing, XRP was down 1.25% in the last 24 hours to $2.06.
XRP signals major move ahead
XRP is showing signs that a major move might be on the horizon. After falling to a low of $2.03 on April 16, XRP has consolidated, with the range tightening over the following five days.
Since this date, XRP has consolidated between $2.03 and $2.12, with traders looking to see where its price will go next. If this tighter consolidation continues, it may result in a larger move, either to the upside or the downside. Volume has dropped by 19% in the last 24 hours to $1.39 billion, a normal occurrence before breakout volatility resumes.
Bears have failed to push XRP below the $2 support, indicating a lack of selling pressure at lower levels. The bulls may attempt to initiate a comeback, which might hit the 50-day SMA around $2.23. This is an important short-term level to monitor because a break above it might pave the path for additional upside gains. Alternatively, a break below the $2 support shifts the odds in favor of the bears. XRP might then plummet to the $1.72 to $1.61 support level.
