Ripple (XRP) shows signs of stabilizing after reclaiming support at $1.50 on Tuesday. A robust technical structure underpins the token’s short to medium-term bullish outlook. Still, XRP is not out of the woods yet, as profit-taking and buyer exhaustion could weigh on price action and extend the recent correction from September highs around $1.66.
XRP stabilizes on cooling exchange reserves
The amount of XRP on Binance exchange has shrunk in the last few days to 2.69 billion XRP as of Monday, down from 2.7 billion XRP last Saturday. Despite the pullback, the current level still sits above mid-August lows, suggesting that supply remains elevated on Binance.
Falling exchange reserves as XRP gradually gains momentum indicates cooling selling pressure in the open market, as supply trickles into self-custody wallets. Investors transfer their digital assets to self-custody wallets intending to hold longer. If supply continues to shrink, the path of least resistance may remain upward, raising the odds of gains toward September highs at $1.66 and August highs at $1.70.
Nevertheless, traders should temper expectations, as perpetual futures Open Interest (OI) in the derivatives market eased to 3.5 billion XRP on Tuesday, from 3.7 billion XRP the day before. More broadly, OI has softened from the 3.8 billion XRP recorded on September 23.
Technical analysis: XRP bulls tighten grip
XRP trades at $1.51, extending its advance well above the key Exponential Moving Averages (EMAs). Price holds firmly over the 50-day EMA at $1.37, the 200-day EMA at $1.37 and the 100-day EMA at $1.31, while the SuperTrend line at $1.28 reinforces a constructive underlying structure.
Momentum remains supportive, with the Relative Strength Index (RSI) hovering near 58 and the Moving Average Convergence Divergence (MACD) indicator marginally positive, suggesting buyers retain near-term control despite the latest upswing.
On the downside, initial support lies at the 200-day EMA at $1.37, closely backed by the 50-day EMA at $1.37, forming a nearby demand cluster should a corrective pullback unfold. Deeper support emerges at the 100-day EMA at $1.32, while the SuperTrend baseline at $1.28 marks a more distant structural floor that would need to hold to preserve the broader bullish bias.
(The technical analysis of this story was written with the help of an AI tool. Know more.)
Bitcoin, altcoins, stablecoins FAQs
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
Bitcoin dominance is the ratio of Bitcoin’s market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.