XRP is currently testing its support levels within an ascending triangle pattern.

Over the past 24 hours, XRP has experienced a decline of approximately 3%, settling around $0.56 as of August 28. This downturn mirrors broader negative movements across the cryptocurrency market, which have been influenced by the anticipation of Nvidia’s earnings report set to be released after the US market closes on August 28. Nvidia, a $3.2 trillion chip manufacturer, is at the center of market attention.

On the XRP front, analysts are observing significant developments. They predict that Nvidia will see a 70% revenue growth this quarter due to the rising demand for artificial intelligence technologies. In 2024, Nvidia’s remarkable 160% stock surge contributed to nearly 30% of the overall gains in the Nasdaq 100, a major US stock index. This index has shown an increasing correlation with the broader crypto market, particularly throughout August. Access NEWSLINKER to stay updated with the latest in technology news.

Given this correlation, cryptocurrencies like XRP often mirror the volatile trends seen in the Nasdaq, especially those driven by events such as the Nvidia earnings countdown. This trend is also visible in other leading cryptocurrencies like Bitcoin and Ethereum.

Data from Coinglass reveals that XRP’s recent losses align with notable declines in both open interest (OI) and funding rates within the futures market. As of August 28, XRP Futures OI stood at approximately $616.88 million, down from $679.81 million the previous day. Concurrently, XRP futures funding rates, calculated every eight hours, shifted from 0.0101% to -0.0102%.

The decrease in XRP’s OI data suggests a lack of market confidence or a retreat from bullish expectations. It could also indicate that some investors are either locking in profits or minimizing losses in response to the price drop. The negative funding rates imply that short positions are now more prevalent. When funding rates are negative in future markets, those holding short positions pay those with long positions to maintain their positions, signaling a bearish sentiment among investors.

Analyzing the XRP chart reveals that the cryptocurrency’s decline is part of a broader correction trend within its ascending triangle pattern. Recently, XRP pulled back by about 10% after encountering resistance at the upper trendline of the triangle, consistent with previous corrections.

As of August 28, XRP is testing the lower trendline of this triangle as support and is aiming to rebound towards the upper trendline level at around $0.63. The daily relative strength index (RSI) for XRP also supports a potential recovery scenario, showing higher lows while remaining within the neutral reading range of 30-70.

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