Ripple (XRP) Nears $3 Milestone as Technical Rebound Accelerates

Ripple (XRP) is making significant strides toward the critical psychological resistance level of $3, driven by a strong technical rebound and growing investor optimism. Since the beginning of October, the cryptocurrency market has experienced a surge in buying momentum, with long positions steadily increasing in the derivatives market. In particular, XRP is gaining additional support from robust trading activity in South Korea, fueling short-term bullish sentiment.

Funding Rates Surge: A Key Indicator of Strengthening Bullish Momentum

Signs of expanding bullish sentiment in XRP are reflected in the derivatives market. Data from CoinGlass reveals that the open interest-weighted funding rate (OI-weighted funding rate) for XRP jumped to 0.0099% on October 1, nearly a ninefold increase from last week’s 0.0011%. This rapid rise points to a significant inflow of long positions.

The OI-weighted funding rate, calculated using perpetual futures contracts across major global exchanges, serves as a gauge for market sentiment. Gradual increases in this metric signal robust buying pressure. Importantly, when funding rates exceed 0.1%, it could suggest market overheating. However, XRP’s current rate remains in what analysts consider a “healthy range,” allowing room for further upward momentum before risks of overextension emerge.

South Korean Investors Show Elevated Demand for XRP

XRP’s upward trajectory is also being fueled by a surge in demand from South Korean investors. On the country’s leading crypto exchange, Upbit, the XRP/KRW trading pair recently surpassed Bitcoin to dominate trading volumes, a clear signal of heightened interest. Daily trading volumes in this pair hit $180 million (roughly 240 billion KRW), underscoring strong engagement from Asian markets.

The combination of significant spot market activity and increased long positions in derivatives markets has provided the necessary support for XRP’s ongoing rally. Analysts note that this dynamic interplay between spot and futures market demand could further increase XRP's price stability and push it closer to breaking key resistance levels.

Eyes on the Next Milestones: $3 Breakout and Beyond

From a technical perspective, XRP has been steadily advancing, currently hovering near $2.95. The immediate hurdle lies at the $3 resistance level, which, if breached, could unlock a path toward the next crucial resistance at $3.18.

The $3.18 price point represents the September 13 peak and coincides with an extended downward trendline stemming from XRP’s sharp move to $3.66 in July. This area stands as a critical inflection point, with an upward breakout potentially reshaping XRP’s medium-term trajectory. Analysts emphasize that overcoming this resistance would confirm a stronger bullish trend and provide a new directional framework for the cryptocurrency.

On the other hand, with funding rates climbing rapidly, investors are advised to remain cautious. A continued surge in funding rates could lead to concerns about market overheating and volatility, highlighting the importance of effective risk management strategies for traders during volatile periods.

Current Market Snapshot

As of this writing, XRP is trading at $2.97 on CoinMarketCap, registering a 5.4% gain over the past 24 hours. With mounting momentum on its side, Ripple remains a top contender to watch as it edges closer to the $3 milestone—a level that could mark a pivotal moment in its price journey.