XRP’s value has dropped by 17% over the past week, fueled by the broader market downturn and further impacted by the US SEC’s decision to file an appeal against Ripple.

Although buying pressure has weakened significantly over the past few days, traders in the XRP derivatives market remain optimistic.  This analysis explores whether or not the bets of these traders will produce favorable results in the near term. 

Ripple Long Traders Double Down

Despite the broader market downturn and the ongoing legal battle between the US SEC and Ripple, XRP derivatives traders maintain a bullish outlook. Long positions continue to dominate, reflecting investor optimism about XRP’s price potential.

This sentiment is supported by the token’s funding rate, which has consistently stayed positive. As of now, the funding rate is at 0.004%, indicating sustained confidence in XRP’s future growth.

Read more: XRP ETF Explained: What It Is and How It Works

A positive funding rate suggests a higher demand for long positions than short ones in the market. It occurs when traders are optimistic about an asset’s future price increases and, as a result, are willing to pay a premium to maintain their long positions.

However, XRP spot traders do not share this stance. They continue to sell their holdings amid fear of a significant price decline once the hearing of the US SEC appeal commences. The token’s negative Chaikin Money Flow (CMF) confirms the strengthening selling pressure.

As of this writing, XRP’s CMF is below the zero line at -0.03. This indicator measures money flows into and out of an asset. When its value is below zero, selling pressure is high as traders remove liquidity from the market to prevent further investment losses. 

XRP Price Prediction: Token Trades Below Key Moving Averages

XRP is currently trading below its 20-day exponential moving average (EMA) and its 50-day simple moving average (SMA). The 20-day EMA is a short-term indicator that quickly responds to price changes by averaging an asset’s closing price over the past 20 days. In contrast, the 50-day SMA provides a longer-term perspective by tracking the average closing price over 50 days.

These moving averages are key indicators for traders, often marking support and resistance levels. When an asset’s price drops below the 20-day EMA, it suggests a potential shift in momentum, possibly leading to further declines. A drop below the 50-day SMA typically confirms a bearish trend.

Read more: Ripple (XRP) Price Prediction 2024/2025/2030

XRP is facing a potential 13% decline, which could see it drop to $0.46 if it continues to distance itself from these crucial averages. However, if sentiment in the spot market turns positive and demand rises, XRP’s price could rally by 25%, pushing it to $0.66.

BNB price has been struggling to break past a resistance block that has kept the altcoin subdued for the last seven months. The current resistance ranges from $575 to $619, and while BNB has shown bullish signals recently, it remains uncertain if the coin can breach this barrier. 

A successful break could bring BNB to a four-month high, but traders are closely watching to see if the momentum will hold.

BNB Has Hopes for a Rally

Over the past few days, Open Interest (OI) in BNB has declined by more than $100 million, indicating that traders are closing their positions. Interestingly, the funding rate is still positive, which suggests that short traders are the ones pulling out.

This could be a bullish sign for BNB, as fewer short positions would mean less downward pressure on the price. A reduced number of shorts could give BNB the boost it needs to rise through the resistance.

While the drop in OI might seem like a bearish indicator at first glance, the positive funding rate points to optimism in the market. If traders continue to withdraw their short positions, BNB could have the chance to finally break past the $575 resistance level and continue its upward trajectory.

Read more: How To Buy BNB and Everything You Need To Know

The overall macro momentum for BNB is looking promising, with the Relative Strength Index (RSI) showing signs of an uptrend. This indicator is currently just above the neutral line at 50.0, indicating that bullish momentum is building. Once the RSI flips 50.0 into support, it could signal further gains for the altcoin, driving its price higher.

As long as the bullish momentum continues, BNB may have a shot at breaching $575 and maintaining its upward trajectory. The critical test will be whether the momentum can hold long enough to push BNB through the $619 resistance level.

BNB Price Prediction: Strength Required

At present, BNB is trading at $567, sitting just below the key resistance block between $575 and $619. Over the past seven months, BNB has only breached $619 once, when it reached its all-time high (ATH) of $721. Breaking through this resistance would be a significant victory for the altcoin.

Given the current factors, a breach of the $575 level seems likely, but pushing past $619 may prove difficult in the short term. As Short-term profit booking is expected, traders should be cautious as this level may act as a ceiling.

Read more: BNB: A Comprehensive Guide to What It Is and How It Works

If BNB fails to breach $575, a drawdown to $550 could occur. Losing this support would invalidate the bullish outlook and potentially lead to further declines in price.

Cardano’s (ADA) price has increased by a modest 3.85% in the last 24 hours. This hike has brought back hopes that the altcoin could produce gains for investors who purchased the token at a higher value than its current price.

While optimism surrounds ADA’s potential growth, technical and on-chain data suggest that such ambitious profit targets might be unrealistic. Here is why.

Cardano Sets Holders Up for Disappointment

Cardano’s recent increase has ensured that the price did not pull back to $0.30. While it trades at $0.36, the Global In/Out of Money (GIOM) shows that those who accumulated ADA between $0.36 and $0.39 are still holding at a loss.

For context, the GIOM categorizes addresses and volumes based on their profitability. By showing this aggregate, the indicator can spot resistance and support areas that could either help accelerate the upswing or invalidate it.

Typically, the larger the volume (clusters), the stronger the support or resistance. As seen below, 373,000 addresses that accumulated 5.21 billion ADA at an average price of $0.37 are out of the money. At current prices, this volume is worth $1.87 billion and is larger than those holding ADA in profits, which purchased around $0.35.

Read more: How To Buy Cardano (ADA) and Everything You Need To Know

Based on the conditions above, it is highly unlikely that ADA will reach $0.39 in the short term due to this supply zone. As such, some of these Cardano investors might fail to achieve the profitable status desired.

Another indicator suggesting a Cardano price decrease is the Bull Bear Power (BBP). The BBP compares the strength of buyers (bulls) with that of sellers (bears). When the indicator’s reading is green, buyers are in control, but if it is in the red, sellers are dominant.

On the daily chart, there is a slight green histogram bar. However, it is nothing compared to the red ones, suggesting that bulls are yet to match bearish control.

ADA Price Prediction: No More Appreciation

Following its recent jump, ADA is approaching two major supply zones: one at $0.42 and the other around $0.50. An analysis of the daily chart shows that Cardano might face resistance around $0.37.

If validated, this could send the token’s value down to $0.34 support. If bulls fail to defend this support, ADA’s price might see another decline, and the cryptocurrency’s value could tank to $0.31.

Read more: 6 Best Cardano (ADA) Wallets You Should Consider in October 2024

On the flip side, Cardano could resist going down to that point if the strength of buyers improves. Should that be the case, the Cardano’s price might breach $0.42 and head toward $0.50.