Net inflows to spot XRP tokens turned positive early Thursday after days of outflows, placing the token in the spotlight following a record-breaking month for its native decentralized exchange (DEX).
Over $15 million in XRP flowed to centralized exchanges on Thursday, primarily led by deposits to Bybit and Kraken, according to Coinglass data. These spot inflows may indicate intentions to sell tokens on the open market, thereby dampening the chances of a significant price rally.
Moreover, the 8-hour funding rates in the XRP perpetual futures markets were reported at -0.0065% as of Thursday morning. This figure suggests a prevailing bias towards short positions, which profit from price declines. It’s worth noting that XRP’s funding rates are more negative than those of both Ethereum (ETH) and Bitcoin (BTC).
Negative funding rates indicate that traders holding short positions are willing to incur a small fee to compensate traders with long positions as they keep their bearish strategies intact.
XRP Below Key Averages
XRP is currently trading below several key moving averages, with the 10-day exponential moving average (EMA) at $2.84 and the 21-day EMA at $2.88. Being below these averages signals a bearish outlook in the short term.
However, the longer-term picture appears more optimistic, as the 100-day simple moving average (SMA) rests just above $2, while the 200-day SMA is at $1.30—both levels lying beneath the current price. These moving averages are essential for identifying trends by smoothing out price data, and the specified periods are commonly utilized by retail traders.
In terms of immediate resistance, XRP faces challenges at the $2.49 level, followed by $2.60. Surpassing these levels could rejuvenate bullish sentiments, paving the way for a potential surge toward the $3 mark—a threshold it breached for the first time since 2018 in January.
Lastly, XRP’s 14-day relative strength index (RSI)—a metric that gauges the magnitude of price changes—hovered just above 36 during Asian trading hours, placing it squarely in the neutral zone. Generally, an RSI value exceeding 70 indicates overbought conditions, while values below 30 suggest oversold status. An RSI around 50 is regarded as neutral, signifying a market in balance.
In conclusion, while XRP continues to experience positive net inflows, the looming bearish sentiment reflected in its funding rates and trading below key moving averages suggests that market participants should tread cautiously as they navigate through these market conditions.
