XRP’s price is currently experiencing some uncertainty as the overall market displays mixed signals of volatility. Short-term holders have been taking profits during price increases, leading to a decrease in buying interest. Despite this, key indicators for XRP are showing signs of growth, hinting at a potential strong rebound in the near future.
XRP’s Open Interest Surges Over $1.5 Billion in a Week
XRP is witnessing significant activity from both buyers and sellers. Recent data from Coinglass reveals that approximately $21 million worth of XRP positions were liquidated in the past 24 hours, with buyers accounting for $17.4 million and sellers for $3.66 million.
Moreover, XRP futures have seen a surge in open interest over the last seven days. Open interest has soared to $5.47 billion, marking a 3.9% increase in the past day. In the span of a week, it has skyrocketed from $2.13 billion to $5.38 billion, representing a remarkable 152% surge. This uptick in futures activity, coupled with a price rise from $2 to $2.60, indicates that traders are growing more confident in a bullish trend.
Additionally, large investors, known as whales, have been reducing their outflows, causing the 90-day average of net flows to turn positive. This shift has historically signaled the end of a downtrend or the beginning of an upward movement.
However, not all indicators are positive. XRP reserves on exchanges have reached a one-month high, potentially exerting more selling pressure. Certain whales have also transferred substantial amounts of XRP to exchanges, possibly with the intention to sell.
Nonetheless, despite these bearish signals, XRP’s upward momentum has not been significantly impeded. The hourly long/short ratio is currently above the 1 level, standing at 1.1227. This suggests that buyers hold the upper hand, with around 53% anticipating a rise in XRP price.
If the ongoing rally persists or establishes new support levels at higher prices, XRP could sustain an overall uptrend in the long run. This scenario is particularly plausible given the upcoming decision by the SEC regarding spot XRP exchange-traded funds (ETFs) anticipated in June, which could trigger another price upsurge.
What Lies Ahead for XRP Price?
XRP price is encountering strong bearish pressure above $2.65 as sellers continue to defend against a surge. Consequently, XRP has been forming multiple higher highs in an attempt to breach immediate resistance levels. Presently, XRP price is trading at $2.55, reflecting a decline of over 1.8% in the last 24 hours.
Analyzing the 4-hour price chart, the bulls have gained more control by pushing the price above the $2.50 threshold. While a minor hurdle exists at $2.65, a breakthrough could propel XRP towards $3, confirming a clear upward trend.
Conversely, if the price faces rejection at $2.65 and dips below the 100-day EMA (currently at $2.42), XRP may consolidate within a sideways range, potentially oscillating between $2 and $2.6.