XRP Dips Amid Nvidia Earnings Countdown

According to Cointelegraph, XRP (XRP) has dropped by approximately 3% in the last 24 hours, reaching around $0.56 on Aug. 28. This decline mirrors broader downside movements in the crypto market as investors await Nvidia's earnings report. Nvidia, a $3.2 trillion chipmaker, is set to release its earnings report after the US market closes on Aug. 28. Analysts predict a 70% revenue growth for the current quarter, driven by increased demand for AI technology. In 2024, Nvidia's 160% stock rally contributed to about 30% of the overall gains in the Nasdaq 100, a US stock market index. The 30-day average correlation between Nasdaq 100 and the broader crypto market has increased in August. Due to this correlation, cryptocurrencies, including XRP, Bitcoin (BTC), and Ether (ETH), are reflecting Nasdaq's volatile trend influenced by Nvidia's earnings anticipation. XRP's recent losses coincide with significant declines in open interest (OI) and funding rates in its futures market, as per Coinglass data. As of Aug. 28, XRP Futures OI was around $616.88 million, down from $679.81 million the previous day. In the same period, XRP futures funding rates dropped to -0.0102% from 0.0101. The decline in XRP OI suggests a lack of confidence in the market's direction or the unwinding of bullish bets. It may also indicate that some traders are taking profits or cutting losses in response to the recent price decline. Negative funding rates show that short positions are now dominant, reflecting a bearish outlook among traders. XRP's current decline is part of a correction trend within its prevailing ascending triangle pattern. The cryptocurrency has pulled back by about 10% after testing the triangle's upper trendline as resistance. As of Aug. 28, XRP is testing the triangle's lower trendline as support, aiming for a return to the upper trendline level at around $0.63. XRP's daily relative strength index (RSI) also supports a rebound scenario, making higher lows while remaining within 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.