XRP (XRP) has dipped by approximately 3% in the last 24 hours to reach around $0.56 on Aug. 28, mirroring downside moves elsewhere in the crypto market amid the Nvidia earnings 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 US market closes on Aug. 28. Analysts are forecasting a 70% revenue growth for the current quarter, driven by the surge in AI demand.
In 2024, the Nvidia stock’s 160% 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.
Source: X
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 and other top-ten cryptocurrencies like Bitcoin (BTC) and Ether (ETH).
XRP/USD daily price chart ft. 30-day correlation with Nasdaq 100. Source: TradingView
XRP open interest, funding rates decline
XRP’s losses today coincide with sharp declines in the open interest (OI) and funding rates in its future market, according to Coinglass data.
As of Aug. 28, the 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.
XRP open interest and funding rates. Source: Coinglass
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.
Related: Is XRP bottoming out versus Bitcoin? Chart fractal mirrors 500% rally setup
Notably, the cryptocurrency has pulled back by circa 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/USD daily price chart. Source: TradingView
XRP’s daily relative strength index (RSI) also supports a rebound scenario, making higher lows while treading inside a neutral reading area of 30-70.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.