XRP Open Interest Hits New ATH: What to Expect From Price?

XRP is among the cryptocurrencies that could potentially deliver some bullish recovery in the next few days. While most of the top coins experienced an overall bearish week, XRP price concluded with a robust uptick and closed in the green.

For context, XRP achieved a net negative price performance last week from Sunday to Friday. However, demand made a comeback on Saturday, kicking off a weekend rally.

Will XRP price settle for a short weekend rally or go for more?

Robust demand during the weekend often sets the pace for the week. This could turn out the same for XRP, which means demand could potentially extend at least for the first half of the week. Although it is also worth noting that such an outcome is not guaranteed.

In total, XRP pulled off a 15.44% weekend bounce back. However, it will require robust demand to surpass resistance at the $2.60 price range. Note that the weekend rally pushed price into this resistance level.

Still on the bullish momentum, its MFI revealed that there was a significant uptick since Thursday last week. Now the big question is whether it can sustain the bullish momentum.

A sizable weekly rally and resistance breakout requires XRP to sustain the bullish momentum. On-chain data recently demonstrated a spike in market activity which could offer insights into the level of weekend demand.

– Advertisement –

XRP open interest jumps to new highs

Perhaps the most notable of the prevailing signs was that there was a 20% plus spike in open interest. More importantly, this allowed it to push to a new ATH of $5.42 billion at the time of observation.

The spike in open interest was accompanied by strong corresponding volumes. For example, XRP derivatives volume surged by more than 90% at the time of observation. Options volumes were up 66.37%.

On the spot side of the market, things looked rather subdued. XRP demonstrated that sell pressure was still present despite the weekend price uptick. Spot inflows were also limited.

There was a surge in spot outflows on Sunday, during which over $41.44 million worth of XRP was sold. This was consistent with the resistance line as sell pressure intensified.

The spot outflows signal that short term profit-taking was still dominant. This may further reinforce the latest short term resistance level and trigger more downside.

Based on the market observations, XRP’s renewed interest offers a chance for the cryptocurrency to regain its bullish momentum.

The cryptocurrency has so far managed to hold on quite well to its November gains. This may be seen as a sign that XRP holders are optimistic about the cryptocurrency’s potential this year.

XRP therefore has a decent chance at breaking through the short term resistance. But, ultimately, its performance is dependent on the level of demand or sell pressure observed this week.