- XRP rebounds above $2.40 as retail investors step in and exchange inflows decline, signaling easing selling pressure.
- A breakout above $2.62 could pave the way toward the $3.00 resistance level.
After days of declines, XRP is showing renewed strength, rebounding above the key $2.40 support level. The token’s recovery reflects growing retail interest and a notable drop in exchange inflows, signaling a possible pause in selling pressure.
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XRP Shows Early Signs of Stability
Following a volatile start to the week, XRP is trading near $2.40, supported by increased retail buying and lower inflows to Binance. Last weekend saw inflows peak at around 362 million XRP’s, coinciding with a major deleveraging event that sent prices tumbling to $1.25.
Typically, high exchange inflows suggest traders are preparing to sell. However, with inflows now easing, market sentiment appears to be shifting toward optimism. This decline in selling pressure could open the door for XRP to extend its gains toward $2.62, and possibly challenge the psychological $3.00 mark.
Derivatives Data Suggests Renewed Confidence
The XRP derivatives market is also stabilizing. Data from CoinGlass shows the Open Interest (OI) weighted funding rate has turned positive, averaging 0.0015% on Thursday after a dip to -0.2045% over the weekend.
A positive funding rate indicates more traders are taking long positions, suggesting improved sentiment across the market. If this trend continues, it could reinforce XRP’s short-term bullish outlook and further strengthen its recovery potential.
Technical Outlook: Bulls Eye $3.00 Target
On the technical front, XRP trades above its immediate support at $2.40, with traders watching the 200-day Exponential Moving Average (EMA) around $2.62 as the next resistance level. A breakout above this threshold could signal a stronger move toward $3.00.
However, caution remains necessary. The Moving Average Convergence Divergence (MACD) still flashes a sell signal, and the Relative Strength Index (RSI) at 33 indicates weak buying pressure. If the $2.40 support fails to hold, XRP could retest lower levels near $2.22.
Despite the mixed technicals, easing exchange inflows and rising retail participation suggest XRP may be gearing up for a steady recovery phase in the sessions ahead.
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