TLDR
- XRP price trading at $2.54, showing 20% weekly gain despite recent 2% decline
- Renewed trader activity on Binance, indicating potential accumulation
- Open interest rebounding from $530 million low, suggesting recovery in market confidence
- XRP finding support at $2.42 with bullish trend line forming at $2.51
- Technical indicators showing bullish momentum with $2.60 as immediate resistance
XRP has followed the broader cryptocurrency market’s upward momentum, recording a 20% increase on the weekly chart before experiencing a minor pullback. Currently trading at $2.54, the asset has declined by 2% in the last 24 hours but remains well above its recent local lows.
The digital asset appears to be maintaining its bullish structure despite the small dip. This price action comes amid growing trader interest across major exchanges.
Analysis from CryptoQuant contributor BorisVest highlights increasing activity in XRP derivatives on Binance. This suggests potential accumulation as speculative interest returns to the market.
The previous steep drop in open interest has reversed course. Leveraged trading positions are now seeing a resurgence, pointing to changing sentiment as participants return following the earlier market flush-out.
On-Chain Metrics Paint Promising Picture
Open interest, which measures the total number of active futures contracts not yet settled, has rebounded strongly. This key metric has recovered from a $530 million low, moving into a higher range.
This recovery suggests returning market confidence after a major drop from its previous $1.5 billion peak.
Binance funding rates, which show the cost of maintaining long or short positions in perpetual futures, have reached a neutral level. This indicates a balance between bullish and bearish positions in the market.
During XRP’s recent correction, these funding rates had turned negative, showing an increase in short positions. This created conditions for a potential short squeeze, where rising prices force short sellers to buy back their positions.
The Taker Buy/Sell Ratio currently stands at 0.91. This means selling pressure still dominates slightly in the market.
However, the price has remained relatively stable despite this selling pressure. This suggests larger players may be absorbing the sells, which often precedes positive price movements.
XRP found strong support at the $2.42 level, which served as a foundation for its recent upward movement. The price successfully broke through the $2.50 and $2.55 resistance levels.
Bulls pushed the price up to test the $2.60 zone, reaching a high of $2.60 before pulling back slightly. A key bullish trend line has formed with support at $2.51 on the hourly chart.
On the upside, XRP faces immediate resistance near $2.60. If it breaks through this level, the next targets are $2.65 and $2.72.
Further upward momentum could take the price toward $2.80, with extended targets at $2.85 and $2.88. The major resistance level sits at $2.95.
If XRP fails to clear the $2.60 resistance, it might start another decline. Initial support lies near $2.51 and the trend line, with the next major support at $2.49.
Technical indicators are turning positive. The MACD for XRP/USD is gaining pace in the bullish zone, while the RSI remains above the 50 level, suggesting positive momentum.
With price trading above the 100-hourly Simple Moving Average, the short-term outlook appears favorable for XRP as it continues to attract renewed trading interest.
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