XRP price analysis shows traders are watching the weekly chart as a new bottoming thesis gains attention, on Sunday, May 10. The focus has moved to XRP’s position against the 200-week simple moving average. The setup points to a possible support zone near $0.93.
As of press time, XRP trades at $1.42 during the latest session, showing a 0.42% rise over the past 24 hours. CoinMarketCap data shows the trading volume stands at $1.2 billion after a 30.48% decline. The token also recorded a 2.04% gain over the last seven days.
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XRP Price Analysis Tracks 200 SMA Downside Pattern
The weekly chart also became the focus of XRP price analysis following a bottoming thesis shared by analyst Egrag Crypto. The analyst focused on XRP’s movement below the 200-week simple moving average.
He noted that historical cycle lows have experienced a smaller downside deviation from that low over time. During the initial large cycle, XRP was almost 60% lower than the 200 SMA. The low for this second major cycle was about 40% lower than the same moving average.
The new framework is hinting at a potential next bottom below the 200 SMA at 20%. Egrag Crypto indicated that the forecast is towards the $0.93 region. He said it was not a confirmed bottom.
Rather, he termed it a “logical structure” if the same downside pattern persists. Now, traders are viewing that level as one of the critical areas to watch as part of the XRP price analysis.
The thesis is linked to the analyst’s notion of “diminishing downside expansion.” In simple terms, it means that the collapse percentages for larger assets may be smaller when they mature.
Egrag associated that concept with decreased downside volatility, greater macro support, and more liquidity stability. He also pointed out that XRP is still holding its long-term ascending trendline. The 100 SMA and 200 SMA still hold significant cycle references.
Derivatives Data Shows Mixed Trader Activity
XRP price analysis from derivatives data showed a mixed picture. CoinGlass data shows futures trading volume dropped 34.00% to $2.05 billion. Open interest rose 1.05% to $2.72 billion.
This means active positions increased while trading activity declined. The XRP OI-weighted funding rate was 0.0052%, which indicated a slightly positive funding environment.
As of now, the XRP price analysis relies on the weekly structure remaining intact. The support thesis is still to be found on the rising 200 SMA and macro trendline.
If the selling pressure persists, then the price may target the $0.93 zone in the near future. If pressure above the current level is maintained, it can help the overall structure to remain stable.
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
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