Ripple’s XRP has shown a consistent uptrend over the past week, reaching a two-month high of $0.64. The cryptocurrency has gained 19% in value, reflecting robust market interest and a possible target of its year-to-date high of $0.74. Analysts now question how quickly XRP can reclaim this peak.
XRP’s negative exchange flow volume signals a reduction in selling pressure, supporting its continued rise. According to Santiment data, 39 million XRP tokens have been moved off exchanges into wallets as of Tuesday, reducing the immediate supply for sale. Such moves indicate a bullish signal, as fewer tokens available on exchanges typically mean lower selling pressure, which can drive prices higher.
Open Interest and Funding Rates Strengthen Bullish Sentiment
The rise in open interest has accompanied XRP’s price surge, with current levels at $989 million, marking a 13% increase in the past 24 hours. Open interest, which tracks open or unsettled contracts in the market, increases alongside the asset’s price, signaling that new liquidity is entering the market. This combination reinforces a bullish market outlook and suggests a possible continuation of the rally.
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In addition, XRP’s funding rate remains positive, showing traders’ bullish sentiment toward further price gains. Currently at 0.047%, this funding rate reflects market bets on rising prices. Positive funding rates generally mean that more traders are taking long positions, confident in a continued price climb.
Key Resistance at $0.66 and Path Toward $0.74
XRP currently trades at $0.64, close to a key resistance level of $0.66, which has proven challenging to surpass since July. If XRP’s bullish momentum sustains and demand strengthens, a breakthrough above this level could allow XRP to approach its year-to-date high of $0.74. A successful breakout and retest of $0.66 would further validate the bullish trend.
Source: CoinMarketCap
However, any weakening in bullish pressure could cause a price correction. Should XRP fail to hold its current momentum, it risks a decline below $0.60, which would invalidate the current bullish outlook.
Ripple’s recent performance reflects strong investor confidence, with reduced selling pressure, rising open interest, and positive funding rates collectively building a case for a potential move to higher levels. XRP’s price action in the coming days will determine whether it can overcome key resistance and set a new high for 2024.
