XRP has rebounded by 3% in the past 24 hours, with its move to $2.13 coming as the crypto market recovers by 1% today.
The altcoin has had a difficult week up until now, falling by 10% in seven days, while also remaining down by 6% in a month.
On the other hand, it retains an impressive 246% increase in the past year, on the back of Donald Trump’s election victory and as a result of Ripple’s success in its legal battle with the SEC.
Yet the past few days have seen XRP’s funding rate turn negative, which may be a sign that overall sentiment remains largely bearish.
XRP: Flip Long or Short? Top Traders Split as Signals Flash
Looking at XRP’s chart today, we see that it’s still trading within the narrow and descending band it has been trading within since mid-January.
Probably the most notable feature of this chart is that XRP’s 30-day average (orange) has been well above the 200-day (blue) for several months now, but it has recently begun to descend towards the longer term indicator.
Source: TradingView
This could be a sign that XRP is indeed on its way down, having held on to elevated prices for longer than many other major cryptocurrencies.
And as noted above, its futures funding rate has been bearish for several days now, and currently stands at -0.00296%, according to data from Laevitas.
This means that more traders have been shorting XRP as opposed to longing it, a sign that a majority expect the coin to continue falling in the near and perhaps medium-term.
However, the picture varies slightly depending on where you look, with XRP’s OI-weighted funding rate on CoinGlass turning positive today, rising from -0.0030% (yesterday) to $0.0028.
In other words, today could be the beginning of a positive turnaround for the coin, although traders would be wise to wait until tomorrow before making any big moves.
That’s because tomorrow is when the US may introduce sweeping tariffs on imported goods, with President Donald Trump likely to reach a final decision on what exactly he’ll be implementing.
If the final policy is less severe than feared, we could see XRP (and other coins) recover, although the opposite could easily be the case.
If so, XRP could drop to $2.00 before it recovers fully.
New Altcoins Can Beat Bearish Market
As stagnant as XRP seems right now, there are some alts in the market that have the potential to rally, even during a largely bearish phase.
Some of these are presale coins, which can rise strongly when they list for the first time, particularly if they’ve had a popular sale.
One such coin that is proving very popular is Solaxy (SOLX), a Solana-based token that has now raised over $28.7 million in its ongoing sale.
Solaxy is proving a hit because it promises to be Solana’s first layer-two network, one which will make using Solana easier and cheaper for investors.
Its L2 will provide lower transaction fees and higher speeds, while also serving as an instant bridge to Solana.
Its emergence comes at a good time, in that Solana continues to experience delays and dropped transactions during peak periods, even after recent upgrades.
As such, interest in the platform could be significant, with users needing SOLX to pay for transaction fees.
This could equate to high levels of demand for SOLX, which traders can buy now by going to the Solaxy website.
The token currently costs $0.00168, although this will rise again later today, so interested investors should act quickly.
The post Should You Long or Short XRP? Top Traders Split as Signals Flash appeared first on Cryptonews.
