XRP has been having a tough time staying above the important $0.60 mark, which is linked to the 50% Fibonacci Retracement line. Despite several attempts, it keeps hitting this resistance level without breaking through. If this trend continues, XRP might struggle to recover and hold any significant rally, especially with the current market conditions weighing it down.
On the bright side, the Ichimoku Cloud indicator shows a bullish sentiment for XRP. It's sitting below the candlesticks, suggesting that the altcoin could rise or at least avoid major corrections. This gives a bit of short-term hope, allowing XRP some space to try and reclaim that $0.60 level. However, the overall market sentiment is still shaky. While the Ichimoku Cloud offers some protection against big drops, the broader market remains uncertain.
Looking at the bigger picture, XRP's momentum has mostly been bearish. Since mid-June, the funding rate has been largely negative. There have only been four instances where it turned positive, indicating that traders generally expect prices to drop. Right now, XRP reflects this negative sentiment, showing that many traders are anticipating a continued decline. This ongoing negative funding rate suggests that a lot of the market is betting against XRP's price going up in the short term. As traders keep expecting a drop, this bearish outlook may make it harder for the cryptocurrency to gain any upward momentum.
Currently trading at $0.58, XRP is gearing up to challenge the 50% Fibonacci line at $0.60. A temporary rise above this level is possible, especially if broader market cues continue to support an upward trend. But this uptick might not last long, as bearish sentiment is still strong among traders. If XRP manages to break above $0.60, bearish pressure could quickly pull it back down. If selling pressure stays manageable, XRP might bounce back from the 38.2% Fibonacci line at $0.55, allowing for a slight recovery.
For a more sustained rally, XRP needs to turn $0.60 into a support level. If it can do that, it could aim for $0.65, which aligns with the 61.8% Fibonacci level. This would change the current bearish outlook and pave the way for more gains.