XRP Poised for Potential Surge in Open Interest Is Breakout Imminent
XRP, the cryptocurrency supported by Ripple Labs, is making efforts to regain its bullish momentum amidst the recent turbulence and sell-offs in the cryptocurrency market. While Bitcoin (BTC) experienced a small decline of 3.2% over the past week, stabilizing at around $65,000, XRP defied the trend and gained 2%, holding steady at about $0.49.
Recent data from CryptoQuant reveals a significant increase in Open Interest (OI) for XRP, indicating its rising market value following updates on the settlement between Ripple and the Securities and Exchange Commission (SEC). This surge in open interest suggests growing market confidence and increased trading activity around XRP.
Rising open interest typically signifies that more investors are opening positions with the expectation of price increases. This usually leads to higher liquidity, benefiting traders by providing tighter bid-ask spreads and reducing slippage, thus improving overall market efficiency.
The rise in XRP’s open interest can be attributed to developments in Ripple’s case against the SEC. Amidst this ongoing legal dispute, Ripple is focusing on expanding its influence in the realm of Central Bank Digital Currencies (CBDCs).
Santiment, a leading crypto data platform, has noted that crowd sentiment on XRP has reached lows not seen since 2024, suggesting a potential buying opportunity. This sentiment is echoed by BCBacker, a former Twitter user and analyst, who points out that XRP is displaying patterns on higher time frame charts similar to those seen before rallies in 2017 and 2021.
Despite the bullish momentum, data from Coinglass reveals that the XRP spot market recorded a $102.7 million outflow on June 19th, indicating that some investors chose to sell their XRP holdings and reduce their exposure after the recent price increase. This cautious stance among some traders reflects the inherent volatility and uncertainty in the market.
XRP is currently trading at $0.49, with a 3% increase on the daily chart. Analysts predict that if XRP’s Open Interest continues to rise, the price could break current resistance levels and target between $0.54 and $0.58. However, potential negative news from the SEC vs. Ripple lawsuit could impact the market, possibly lowering the price below its current support. Therefore, traders should maintain a balanced view of the market’s potential upsides and risks.
Disclaimer: The content on this site is not investment advice and investing is speculative. When investing, your capital is at risk.
