Ripple (XRP) peaked last week at $0.58, logging 8.3% gains for the period. However, bears have established resistance to stall upside momentum just below the $0.60 mark.
Thanks to a new strategic acquisition unveiled by Ripple recently, market data shows most XRP traders remain confident in a prolonged rally unfolding soon. The question now is whether bulls can capitalize on the positive sentiment to spark a decisive breakout.
After Ripple announced its purchase of Standard Custody on February 13th, XRP finally joined in on the broader market uptrend, surging 12% to hit $0.58.
Also read: Ripple: XRP Eyes A Potential 7,000% Breakout
Nonetheless, bullish tailwinds from the recent milestone acquisition seem to persist amongst derivatives traders. According to Santiment’s funding rate data, fees that futures traders pay to keep speculative long positions open have steadily trended higher since last Monday, signaling confidence that spot prices will keep rising in the short term.
Typically, high positive funding rates mean XRP longs are willing to pay rising fees to shorts to maintain their bets on the upside. The fact that these measures have held up amidst the 7% price dip over the last few days suggests an intention to defend these bullish bets rather than capitulating.
Will XRP surge past $0.60?
Drawing inferences from the recent price action and resilient funding rate signals, analysts suggest scope remains for a 20% XRP price upswing if macro market conditions allow. With the Parabolic SAR indicator still highlighting dots below the spot price, the overarching bullish bias in play has not been invalidated as yet.
Presently trading around $0.55, some conviction from returning Bitcoin ETF inflows could provide enough trigger for XRP to revisit the $0.60 mark this week as its next test. The area around $0.55 seems primed to serve as the launchpad if bullish momentum accelerates once more across crypto.
Also read: Ethereum (ETH) February-End Price Prediction
However, should bearish forces dominate and push XRP decisively below $0.50, the bullish setup would deteriorate. The area around $0.51 appears to be a crucial line of defense for preventing this breakdown scenario from transpiring.
So despite the recent cooldown, most XRP traders still envision the path of least resistance skewing upward based on market signals. With the bullish catalyst of Ripple’s latest acquisition also now bolstering the investment case, the conviction seems high for prices to make another push upwards soon.