The post XRP Eyes Strong Rebound as Open Interest Soars 150%: What’s Next for XRP Price? appeared first on Coinpedia Fintech News
XRP’s price is having trouble finding a clear direction as the overall market shows mixed signs of volatility. Recently, short-term holders started taking profits during price increases, which led to a drop in buying interest. However, some key indicators for XRP are still rising, suggesting that a strong rebound could be on the way soon.
XRP’s Open Interest Gained Over $1.5 Billion in a Week
XRP is currently seeing strong activity from both buyers and sellers. According to data from Coinglass, around $21 million worth of XRP positions were liquidated in the last 24 hours — with buyers accounting for $17.4 million and sellers for $3.66 million.
Meanwhile, interest in XRP futures has been climbing for over the last seven days. Open interest has jumped to $5.47 billion, up over 3.9% in the past day. Over the past week, it surged from $2.13 billion to $5.38 billion, a massive 152% increase. This rise in futures activity, along with a price increase from $2 to $2.60, suggests that traders are becoming more confident in a bullish trend.
Additionally, large investors (whales) have been slowing their outflows, turning the 90-day average of net flows positive. Historically, this kind of shift has often signaled the end of a downtrend or the start of a new upward move.
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However, not all signs are positive. XRP reserves on exchanges are at a one-month high, which could mean more selling pressure. Some whales have also moved large amounts of XRP to exchanges, possibly to sell.
Still, despite these bearish signs, none have been strong enough so far to slow down XRP’s recent upward momentum. The hourly long/short ratio is hovering above the 1 level, currently at 1.1227. This suggests that buyers have the advantage as around 53% expect the XRP price to rise.
If the current rally continues or at least creates new support levels at higher prices, XRP could stay in an overall uptrend over the long term. This is especially likely with the SEC’s decision on spot XRP exchange-traded funds (ETFs) expected in June, a ruling that could trigger another price jump.
What’s Next for XRP Price?
XRP price is facing strong bearish pressure above $2.65 as sellers continue to defend a surge. As a result, XRP has been forming multiple higher highs, attempting to break through immediate resistance channels. As of writing, XRP price trades at $2.55, declining over 1.8% in the last 24 hours.
Analysing the 4-hour price chart, the bulls have gained more control by pushing the price above the $2.50 mark. There’s a small hurdle at $2.65, but if XRP can break through that, it could climb to $3, a move that may validate a clear upward trend.
On the other hand, if the price gets rejected at $2.65 and falls below the 100-day EMA (currently at $2.42), it could mean XRP will trade in a sideways range for a while, possibly hovering between $2 and $2.6.