XRP Rally Signals Potential Upside to $3 Amid Rising Open Interest and Caution

• XRP rallied 11.4% in four days, fueled by whale accumulation and technical breakouts.

• Open Interest reached May lows near $550 million, signaling a potential new trending phase.

• Taker buy volume surged, with Open Interest climbing to $590 million in 24 hours, supporting bullish momentum per CryptoQuant data.

Discover XRP’s 11.4% rally details, whale activity, and price targets. Explore if bulls can push past $2.77 resistance for gains up to $3.40. Stay informed on crypto trends today.

What is driving the current XRP price rally?

XRP price rally has been propelled by significant whale accumulation and a decisive breakout above the $2.55 resistance level. Over the past four days, XRP surged 11.4%, reflecting heightened buyer interest and positive market sentiment. This momentum is further supported by rising Open Interest and taker buy volumes, positioning XRP for potential short-term gains if resistances at $2.64 and $2.77 are breached.

How are Open Interest trends influencing XRP’s bullish outlook?

XRP’s Open Interest has dipped to levels just below $550 million, mirroring figures from May, as noted in a CryptoQuant Insights report. Analyst PelinayPA highlighted that this deleveraging following the October 10 crypto crash has reset the market, clearing out excessive positions and setting the stage for a fresh uptrend. Short sentences underscore the key shift: Open Interest recovery alongside spot demand could target the $3 supply zone. Continued momentum might extend to $4.50, based on historical patterns observed since May. The recent climb from $550 million to $590 million within 24 hours reinforces this bullish setup, with taker buy/sell ratios favoring buyers during uptrends.

Frequently Asked Questions

Should XRP investors anticipate a bullish week ahead?

XRP’s breakout past $2.55 resistance, combined with rising Open Interest and taker buy volume, points to short-term bullish sentiment. However, sustaining this requires overcoming $2.64 and $2.77 levels to target $3.10, as per technical analysis from TradingView data.

What factors could limit XRP’s rally despite positive indicators?

While whale activity and derivatives data are encouraging, the one-day chart structure remains bearish, with $2.80-$3 as a critical supply zone. Bitcoin’s performance above $112,000 supports broader sentiment, but failure to hold gains could lead to retracements into demand zones around $2.80.

Key Takeaways

• XRP’s 11.4% rally signals strength: Whale accumulation and resistance breakouts at $2.55 have flipped short-term sentiment bullish.
• Open Interest reset favors uptrends: Levels near $550 million, similar to May, indicate deleveraging that often precedes rallies to $3 or higher.
• Monitor taker buy volume: Surging ratios and OI growth to $590 million suggest buyers are in control; target $3.40 if $2.77 clears.

Key Takeaways

Should XRP bulls expect a bullish performance this week?

Yes, the breakout past the local resistance at $2.55, the rising Open Interest, and Taker Buy Volume showed short-term bullish sentiment.

How high can the current rally go?

The next targets would be $3.1 and $3.4- but caution is warranted. XRP was yet to recapture the $2.64 and $2.77 resistance levels.

Ripple [XRP] has rallied 11.4% in four days. One of the reasons spurring this move was whale accumulation. The breach of the technical $2.5 resistance swayed the short-term sentiment bullishly.

Source: XRP/USDT on TradingView

In a recent report, COINOTAG noted that the $2.5-$2.77 was a key resistance zone for the bulls to overcome. At the time of writing, the local swing high at $2.64 was being challenged.

If breached, the likelihood of a rally beyond $2.77 would increase.

This week’s XRP price target would become $3. Bitcoin’s [BTC] move past $112k at the time of writing would help turn sentiment bullish in the short-term.

XRP Open Interest reaches May lows

Source: CryptoQuant

In a post on CryptoQuant Insights, analyst PelinayPA revealed how the Open Interest trends could set the stage for an XRP rally. The Open Interest was just below $550 million, and at the same levels it had been in May.

The crypto crash on the 10th of October wiped out OI hard, across the market. This deleveraging event has accelerated the price reset and cleaned out the derivatives structure.

The current setup resembled conditions often seen at the beginning of a new trending phase, the analyst argued.

A recovery in the OI alongside strong spot demand would enable an XRP target to the $3 supply zone. Continued demand and momentum could push prices to $4.5, according to the analyst.

Source: CryptoQuant

The taker buy/sell ratio swung in favor of the buyers recently. This has happened a handful of times since May, and usually comes during a strong uptrend.

Since August, price retracements into the $2.8-$3 demand zone have been met with heightened taker buy orders, indicating expectations of a bullish reaction from the support zone.

The increased taker buy volume as XRP races past the local resistance at $2.55 was a bullish development. The Open Interest has climbed from $550 million to $590 million within 24 hours, CryptoQuant data showed.

XRP bulls must take care not to get swept away by these developments. While positive, there were substantial obstacles overhead. The 1-day timeframe’s structure remained bearish.

The $2.8-$3 supply zone would be key to deciding the next impulse move’s direction.

Conclusion

The XRP price rally of 11.4% underscores growing investor confidence through whale accumulation and favorable derivatives metrics like Open Interest and taker buy ratios. As XRP challenges resistances at $2.64 and $2.77, overcoming the $2.80-$3 supply zone could unlock targets up to $3.40. Market participants should monitor Bitcoin’s influence above $112,000 for sustained bullish outlook, positioning XRP for further advancements in the evolving crypto landscape.