Ripple (XRP) Price Analysis: XRP Traders Raise Leverage by 200% as BTC, BNB, TON Flash Bullish Signals

Ripple (XRP) Price Analysis

XRP price continues to consolidate below the $0.59 level as of Sept 27, however vital market indicators in the derivatives markets show bull traders bracing up for a major breakout. Could the ongoing rallies involving Bitcoin and BNB spread towards the XRP markets in the days ahead?

XRP Price Stagnates Below $0.60 as Bitcoin, BNB Hit New Monthly Peaks

Ripple (XRP) price was left lagging behind as global crypto markets delivered another double-digit growth performance this week. Among mega cap crypto assets Bitcoin, Toncoin and BNB grabbed headlines as they racing up the top gainers charts.

Bitcoin price rose amid US SEC approved Blackrock’s BTC ETF for Options trading at the start of the week on Sept 22. Likewise Toncoin also recorded major gains amid positive tailwinds from Hamster Kombat’s official launch across exchanges with the 60 billion HMSTR token airdrop on Thursday Sept 25.

The chart above shows that XRP price has failed to reclaim the $0.60 level since it slipped into a consolidation phase on after hitting $0.61 on Sept 21, in early reaction to the US Fed rate cut. At the time of writing on Sept 27, XRP price is currently trading at $0.58.

Meanwhile, between Sept 21 and Sept 27 TOTALCAP chart shows that the broader crypto markets grew by more than 10% as investor piled of over $63.8 billion in fresh capital inflows,

Evidently, while the likes of BTC, TON and BNB advanced further this week, amid varying bullish catalysts, XRP price remained sandwiched within the $0.56 to $0.59 narrow range.

Bull Traders Raise Funding Rates 200% as Chanpeng Zhao Release Triggers Market Optimism

On Sept 27, Binance CEO, Changpeng Zhao was release from prison sentence 2 days earlier that the scheduled Sept 29 release date. This news appears to boosted investor sentiment across the crypto markets.

When a prominent asset like XRP underperforms the broader market trends, amid strong bullish tailwinds, it attracts the attention of savvy speculative bull traders.

After recording a 5% dip, while broader markets posted 10% growth this week, recent data trends in the XRP derivatives market indicate that speculative traders are positioning themselves strategically for amplified gains if Ripple’s coin joins the ongoing rally.

Coinglass’ funding rate metric monitors the balance of leverage fees between SHORT and LONG traders holding perpetual futures contracts for a particular asset.

The chart above shows XRP’s funding rate currently trending at 0.0102%. This figure has remained in positive territory for 14 consecutive days since September 14, and reaching its highest levels in three months.

This trend reveals three significant bullish signals. First, the rising funding rate reflects that bullish traders are paying 200% higher fees to maintain LONG positions. When traders continue raising the funding rate during a price consolidation phase, as seen in XRP, it signals growing confidence among bull traders as they deploy more leverage in anticipation of amplified profits if price move upwards.

Additionally, the funding rate peaking on September 27 suggests a positive market response to Changpeng Zhao’s release.

Despite no direct legal connection to XRP, the softer regulatory stance posed by CZ’s early release could perceived as a favorable outlook for Ripple’s ongoing final appeal against the SEC.

In summary, XRP has recently underperformed compared to broader market trends, but recent derivatives market data suggests the cryptocurrency could soon break out of its consolidation phase.

XRP Price Analysis: Why Next Rally Could Reach $0.65

XRP price has dipped 4.83% over the past six trading sessions, reaching $0.588. However, rising funding rates suggest that bullish traders are positioning for an imminent upside, which could potentially spark a rally towards the $0.65 territory in the weeks ahead.

The Ichimoku Cloud indicator, which helps identify trend direction and momentum, shows XRP currently trading within a zone of consolidation. Currently XRP price hovers near the Kijun-Sen (blue line) at $0.5883, acting as immediate support.

However, the cloud (green region) at $0.5754 – $0.5677 provides a stronger support zone. Any break below these levels could trigger further downside, but the ongoing funding rate trend suggests this scenario is unlikely.

With XRP’s funding rate remaining at elevated levels, signaling increased long interest, a breakout above $0.5933 could drive prices to test the next key resistance at $0.65. Should buying pressure intensify, this would mark a strong bullish continuation as the market anticipates Ripple’s appeal against the SEC to be finalized.