XRP is retesting a major support level, just like it did in 2017 before exponentially gaining value. With the coin following the same trajectory, an analyst states that XRP is giving yet another chance for those who missed buying it at these levels. Even the funding rate remains positively skewed.
XRP manages to recover just in time
Ripple’s coin XRP narrowly avoided falling below the $1 psychological support level. With coin approaching the 50-day moving average, which is at $1.31, it could be a monumental moment for those looking to enter the market.
XRP repeats 2017 pre-bull phase
A crypto netizen who goes by the pseudonym Tom spotted XRP repeating a pattern that was seen during the pre-bull period of 2017. As shown in the X post below, the XRP price was retesting the downtrend line that it had been respecting in 2014 before the price rallied by triple digits during the 2017 rally.
Currently, XRP is in the latter stages of the retest and could be following the same pattern, with prices potentially appreciating as they did back in 2017.
It’s not just the long-time charts that show that the XRP has bottomed out; even the chart below shows the same thing. As shown in the chart below, XRP is testing the downtrend line that has been restricting its movement since last September. XRP is testing this level after bottoming just above the $1 level.
For instance, when we consider the relative strength index, it is also rising after almost going into the oversold region. This indicator shows that the prices have recovered and the rally is about to take over.
XRP bottoms out as funding rate turns positive
To substantiate that XRP has bottomed out, there is one more on-chain metric that could be considered. The funding rate is the metric that indicates XRP may have bottomed out, with the derivatives market heavily positioned on one side.
A positive funding rate indicates that traders are predominantly bullish on the asset, with more market participants opening long positions than short positions. In perpetual futures markets, this causes long traders to pay a periodic fee to short traders to maintain their positions. A moderately positive funding rate is generally considered healthy, as it reflects strong demand and confidence in further price appreciation.
