Ripple (XRP) Reclaims $1.50…Will it Target $1.70 Again as Exchange Holdings Decrease?

▲ Ripple (XRP) ©Godasol

XRP (Ripple) has reclaimed the $1.50 support level, and a decrease in Binance's XRP holdings indicates an easing of selling pressure. While key moving averages and the SuperTrend support an upward structure, the decrease in open interest in the derivatives market suggests that it's necessary to confirm whether buying momentum will continue before retesting the September high.

According to investment media outlet FXStreet on September 29 (local time), XRP showed signs of stabilization by recovering $1.50 on Tuesday. Binance's XRP exchange reserves decreased from 2.7 billion XRP last Saturday to 2.69 billion XRP on Monday. However, current holdings are still higher than the mid-August low, indicating that the supply within Binance itself remains relatively high.

The decrease in exchange holdings suggests that XRP is moving to private wallets, easing selling pressure in the open market. If investors continue to move assets to private wallets for long-term holding and exchange supply further decreases, analysis suggests that XRP could increase its potential to rise towards the September high of $1.66 and the August high of $1.70.

However, the derivatives market is cooling down somewhat. XRP perpetual futures open interest decreased from 3.7 billion XRP on Monday to 3.5 billion XRP on Tuesday. This is lower even compared to the 3.8 billion XRP recorded on the 23rd. Furthermore, if profit-taking and exhaustion of buying momentum put pressure on the price, there remains a possibility that the recent correction, which began from the September high of $1.66, could continue.

Technically, XRP is trading at $1.51, above all major Exponential Moving Averages (EMAs). The 50-day EMA and 200-day EMA are both at $1.37 respectively, and the 100-day EMA is located at $1.31, with the SuperTrend also supporting an upward structure at $1.28. The RSI (Relative Strength Index) is around 58, maintaining a bullish zone, and the MACD (Moving Average Convergence Divergence) also shows a slight positive, indicating that buying momentum maintains dominance in the short term.

In case of a decline, $1.37, where the 50-day and 200-day EMAs overlap, is considered the first major support zone. If this price level breaks, $1.32, where the 100-day EMA is located, and then $1.28, the SuperTrend baseline, could successively act as support levels. With decreasing exchange holdings and a robust technical structure supporting upward potential, the key is whether XRP can hold $1.50 and retest the $1.66-$1.70 range.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*