XRP Holds $2 Support Amid $138M Market Liquidation, Positive Funding Rate Signals Bullish Sentiment

The cryptocurrency market is experiencing mild selling pressure in Sunday’s early session, with leading altcoins, including XRP, trading in the red. Over the past 24 hours, the crypto derivatives market saw $138 million in liquidations, with short positions accounting for $90 million of that total. Despite the broader bearish trend, XRP stands out with a positive funding rate of 0.0031% on Binance, according to CoinGlass. This suggests traders are leaning bullish, with more long positions than shorts.

XRP is currently priced at $2.06, down 1.25% over the past 24 hours. Yet, this decline comes with a silver lining: the asset has successfully held its ground above the key $2 support level. Since dipping to $2.03 on April 16, XRP has traded within a narrow range between $2.03 and $2.12, signaling a potential breakout setup. Trading volume has dropped by 19% to $1.39 billion, a typical pattern before a volatility surge.

If bulls manage to reclaim the 50-day simple moving average around $2.23, it could trigger an upside breakout. However, failure to hold the $2 support may open the door for a decline toward the next demand zone between $1.72 and $1.61. The market remains in a state of consolidation, but XRP’s positive funding rate and price resilience suggest a major move could be imminent.

With investor sentiment cautiously optimistic, XRP’s price action over the coming days will be critical. Traders are closely watching for a breakout direction as the market awaits the next catalyst.