Ripple’s XRP has risen nearly 10% over the past seven days, trading around $3 for reporting time. This occurs amid a wider increase in crypto activity, highlighted by a 1% increase in global crypto market capitalization over the same period.
Surge reflects new bullish sentiment as both price action and derivative data point to lasting momentum.
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Leverage Soar, EMA breakout checks trends
According to Cryptoquant, Binance’s estimated leverage ratio (ELR) for XRP rose to a weekly high of 0.325, an increase of 6% over the past seven days. The move has boosted investors’ trust and demonstrated a stronger appetite for risk.
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The ELR of the asset tracks the average leverage used by traders and completes cryptocurrency exchange transactions. It is calculated by dividing the public interest on an asset by the exchange reserves for that currency.
As it fades, it reflects the decline in risk appetite among traders. This shows investors are becoming more cautious about their upcoming token outlook and avoiding high-leverage positions that can increase losses.
Meanwhile, the rising ELR shows that traders are taking on a larger leveraged position, reflecting stronger beliefs and willingness to take on higher risks.
For XRP, this trend indicates that the rise momentum could continue as market reliability is increased and traders leveraged short-term gatherings of tokens.
Additionally, the XRP rally confirmed the bullish outlook above, pushing up prices above the 20-day index moving average (EMA) on the daily chart. At the time of this writing, the main moving average forms dynamic support for XRP price under $2.91.
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The 20-day EMA tracks the average price of assets over the last 20 days, giving weight to recent prices.
When token prices exceed the 20-day EMA, it indicates a shift to bullish momentum. The 20-day EMA serves as a short-term trend indicator. So staying beyond that often means XRP buyers are gaining control, and the market is bullish.
XRP Bulls Eye $3.22 $3.12 Resistance Flip Support
The XRP remains under the resistance formed at $3.12 at the time of this writing. Buy-side pressure could increase towards another $3.22 if the token flips its price mark on the support floor.
However, profits can hinder this. In that scenario, the price of the XRP could fall below the 20-day EMA and drop to $2.87.
