- XRP holds above $3 as open interest drops 4.19%, but options open interest rises 5.06%.
- XRP’s long/short ratio remains neutral at 0.952, with Binance longs dominating at 2.6657x shorts.
- XRP liquidation hits $9.87M in 24 hours, with $7.79M from longs and $2.08M from shorts.
XRP has set a new record after a six-month candle closed above the Bull Market Support Band (BMSB) for the first time. This action can be taken as a sign of changing sentiment in the market and puts XRP into the bullish zone. At press time, trading at $3.07 after a 3.21% drop, traders question if this breakout will lead to a larger market rise.
Is XRP’s Price Action Signaling a Trend Reversal?
EGRAG Crypto pointed out that the price of XRP has continued to show strength as it rose above key resistance levels and crossed the $2 mark. In the past, such a breakout has triggered prolonged periods of upward trends. It recently climbed to $3.39, but the price pulled back slightly, as is common with any strong upward move. Nevertheless, the fact that XRP has been trading above the $3 mark shows increased investor confidence.
Based on previous market cycles, XRP increases momentum once it breaks through its strongest resistance points. After reaching $3.50 resistance, XRP needs a sustained uptrend to hit its $5 target based on Fibonacci levels.
XRP Derivatives Data Analysis: A Shift in Market Sentiment
The derivatives market for XRP has dipped by 27.12% in volume to $9.03B, and the open interest has decreased by 4.19% to $6.35B. However, the options open interest increased by 5.06% to $3.30M, indicating ongoing hedging. The long/short ratio of 0.952 is neutral, with Binance longs being 2.6657 times more dominant than shorts.
Liquidation data reveals that $9.87 million has been erased in the last 24 hours, and $7.79 million of this is from longs and $2.08 million of it from shorts. This can be attributed to the volatility of XRP even with bullish sentiment among the top traders with a long bias at 2.7481 in accounts and 2.3861 in positions.
Related: SEC Adjusts Litigation Database, But Ripple’s XRP Lawsuit Remains
Final Verdict: Can XRP Hold Above $2 and Push Higher?
The recent XRP record above BMSB marks the start of a possible sustained upward trend in prices. Trade signals and technical indicators point toward more price growth, and traders continue demonstrating their market interest. For the rally to establish its strength, XRP needs to stay above $3 while moving higher through upcoming resistance points.
A favorable market will enable XRP to reach $5 within the upcoming months. However, traders must watch for economic developments and market price pullbacks. The upcoming weeks will show if XRP continues to grow into a full bull run or stops as a temporary increase.
