Welcome to Extreme Investor Network, where we provide you with the latest insights and analysis on the Stock Market, trading, and all things Wall Street. Today, we’re focusing on Ripple (XRP) and its funding rate vs. price trends.
The chart above displays XRP’s funding rate, currently sitting at 0.0102%. This rate has been on an upward trend for the past 14 days, reaching its highest levels in three months. What does this mean for traders?
Well, a rising funding rate signifies that bullish traders are willing to pay higher fees to maintain their LONG positions. This indicates growing confidence among bull traders, as they use more leverage in anticipation of potential profits if the price moves upward. The recent peak in the funding rate on September 27 coinciding with positive market response to Changpeng Zhao’s release also suggests a favorable outlook for Ripple’s ongoing legal battle with the SEC.
Despite XRP’s recent underperformance compared to the broader market trends, derivatives market data indicates that the cryptocurrency could soon break out of its consolidation phase. This could potentially lead to a rally towards the $0.65 territory in the coming weeks.
As we analyze XRP’s price movements, it’s important to note that the Ichimoku Cloud indicator shows the cryptocurrency trading within a zone of consolidation. Currently, XRP is hovering near the Kijun-Sen at $0.5883, acting as immediate support.
Stay tuned to Extreme Investor Network for more in-depth analysis and insights into the Stock Market, trading strategies, and the latest trends on Wall Street. Happy investing!