XRP prices have declined today due to a choppy risk-on mood ahead of Nvidia earnings and cautious sentiment in the futures market, among other reasons.
XRP has dipped by approximately 3% to around $0.56 in the last 24 hours as of Aug. 28, mirroring downside moves elsewhere in the crypto market amid the Nvidia earnings report countdown.
Nvidia earnings set the tone for crypto market
All eyes are on the $3.2 trillion chipmaker Nvidia as it prepares to release its earnings report after the United States market closes on Aug. 28. Analysts are forecasting a 70% revenue growth for the current quarter, driven by the surge in demand from the artificial intelligence sector.
In 2024, Nvidia’s 160% stock price rally contributed to around 30% of the overall gains made by Nasdaq 100, a US stock market index whose 30-day average correlation with the broader crypto market increased in August.
As a result of this correlation, cryptocurrencies, on the whole, are mirroring Nasdaq’s choppy trend led by the Nvidia earnings countdown. That includes XRP
XRP $0.58 and other top 10 cryptocurrencies like Bitcoin BTC
$59,751 and Ether ETH $2,523.
XRP open interest, funding rates decline
XRP’s losses coincide with sharp declines in the open interest (OI) and funding rates in its futures market, according to CoinGlass data.
As of Aug. 28, XRP futures OI was around $616.88 million compared to $679.81 million a day prior. In the same period, the XRP futures funding rates — calculated every eight hours — dropped to -0.0102% from 0.0101.
The decline in XRP OI indicates a lack of confidence in the market’s direction or the unwinding of bullish bets. It may also imply that some traders are taking profits or cutting losses in response to the recent price decline.
Meanwhile, negative funding rates indicate that short positions are now dominant. In future markets, when funding rates are negative, shorts will pay longs to keep their positions open, reflecting a bearish outlook among traders.
XRP technicals indicate a rebound ahead
XRP’s declines today are part of a correction trend occurring inside its prevailing ascending triangle pattern.
Notably, the cryptocurrency has pulled back by around 10% after testing the triangle’s upper trendline as resistance, akin to similar corrections recently.
As of Aug. 28, XRP is testing the triangle’s lower trendline as support, eyeing a return to the upper trendline level at around $0.63.
XRP’s daily relative strength index also supports a rebound scenario, making higher lows while treading inside a neutral reading area of 30–70.
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