XRP Price Forecast: XRP rangebound as Ripple Prime offers direct access to Coinbase derivatives
- XRP delicately holds above $1.40 support as the broader crypto market remains cautious amid the Middle East war.
- Ripple Prime offers clients direct access to Coinbase derivatives, including XRP, BTC, ETH and SOL futures contracts.
- Retail interest in XRP is subdued, with futures Open Interest slipping to $2.33 billion.
Ripple (XRP) is trading sideways in a range, with support at $1.25 and resistance at $1.67 at the time of writing on Friday, as investors navigate growing uncertainty amid the war in the Middle East.
Ripple Prime supports Coinbase derivatives
Ripple, in collaboration with Nodal Clear, announced on Thursday that Ripple Prime clients now have access to the full suite of Coinbase Derivatives contracts. The offering includes highly liquid nano Bitcoin (BIT) and nano Ethereum (ET) futures, as well as institutional and nano-sized contracts for Solana (SOL) and XRP.
Trading is available 24/7 within a regulated environment and is executed via Coinbase Derivatives, Hidden Road Partners, and the Futures Commission Market (FCM).
Ripple Prime delivers multi-asset, technology-driven prime brokerage, clearing, and financing, according to Business Wire.
XRP faces retail interest decay
The persistent drawdown in XRP prices since the record high of $3.66 in July has driven retail investors to the sidelines, leading to a massive slump in futures Open Interest (OI), which averages $2.33 billion on Friday, down from $2.35 billion the previous day.
In contrast, the OI peaked at $10.94 billion in July, but the persistent selling in the derivatives market undermines retail interest. OI reflects the notional value of outstanding futures contracts.
Technical outlook: XRP holds key support
XRP is trading in a narrow range between $1.25 and $1.67, with immediate support at $1.40. The SuperTrend indicator on the daily chart caps the upside at $1.61, keeping the near-term bias moderately bearish despite the absence of aggressive downside follow-through.
At the same time, XRP remains well below the 50-day, 100-day and 200-day Exponential Moving Averages (EMAs), which continue to slope lower and frame a dominant downtrend. The Moving Average Convergence Divergence (MACD) holds above its signal line, but green histogram bars contract amid a fading upside momentum.
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Initial resistance emerges at the 50-day EMA around $1.56, with a break above it required to open a move toward the upper end of the range around $1.67. The 100-day EMA at $1.77 highlights a medium-term target. On the downside, immediate support lies at the recent reaction floor near $1.40, ahead of Wednesday's low at $1.35. A decisive break of these levels would expose the October 10 support at $1.25.
Open Interest, funding rate FAQs
Higher Open Interest is associated with higher liquidity and new capital inflow to the market. This is considered the equivalent of increase in efficiency and the ongoing trend continues. When Open Interest decreases, it is considered a sign of liquidation in the market, investors are leaving and the overall demand for an asset is on a decline, fueling a bearish sentiment among investors.
Funding fees bridge the difference between spot prices and prices of futures contracts of an asset by increasing liquidation risks faced by traders. A consistently high and positive funding rate implies there is a bullish sentiment among market participants and there is an expectation of a price hike. A consistently negative funding rate for an asset implies a bearish sentiment, indicating that traders expect the cryptocurrency’s price to fall and a bearish trend reversal is likely to occur.
(The technical analysis of this story was written with the help of an AI tool.)
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