Ripple’s XRP is trading above the $2.40 support after failing to build on its momentum on Monday. The volatile performance comes following Friday’s massive market crash, with traders expecting further volatility in the near term.

XRP derivatives are showing signs of stability, which could present new opportunities for traders in the coming weeks.

Ripple announced earlier this week that it has entered into a strategic partnership with Immunefi, a platform dedicated to blockchain protection and security operations.

The partnership involves a $200,000 Attackthon designed to test and strengthen the XRP Ledger Lending Protocol.

According to Ripple, the event will run between October 27 and November 24. Researchers are urged to review the code and uncover vulnerabilities, and earn rewards in RLUSD.

In addition to that, retail interest in XRP has stabilized over the past few days following weeks of decline. However, the interest remains lower than the level seen before last week’s deleveraging event. 

Data obtained from Coinglass revealed that the XRP futures Open Interest (OI) averaged $4.34 billion on Tuesday, down from the $9 billion recorded on October 7.

However, it has slightly increased from the four-month low of $4.2 billion over the weekend, suggesting that retail demand in XRP could be slowly returning. An ascending OI trend suggests that investors are convinced of XRP’s ability to sustain recovery in the medium to long term. 

The XRP/USD 4-hour chart remains bearish and inefficient as XRP is down 3% in the last 24 hours. The fifth-largest cryptocurrency by market cap has been testing the short-term $2.40 support over the last fw hours following a rejection from the Monday high of $2.63. 

The momentum indicators remain bearish, suggesting that investors are struggling to see a clear bullish narrative on the XRP/USD pair. The Moving Average Convergence Divergence (MACD) indicator continues to uphold a sell signal, with both lines within the bearish region. 

The Relative Strength Index (RSI) of 45 is still below the neutral 50, indicating a bearish trend. The bulls would need to defend the $2.40 support level in the near term to ensure that XRP doesn’t enter into the oversold territory.

Failure to defend this support level could bring the $2.0 region into focus, which was last tested in late June. The $1.61 support level could also become a long-term target if the market turns bearish on the higher timeframe. 

On the flip side, the bulls could regain control of the market and push XRP’s price above the  200-day EMA at $2.63 over the next few hours. Doing so would ascertain the uptrend’s strength for an extended rally towards the $3.0 psychological level in the near term.

The post XRP stays below $2.6 despite Ripple’s latest partnership: Check forecast appeared first on Invezz

181 +