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In the midst of recent cryptocurrency market turbulence and sell-offs, XRP, backed by Ripple Labs, is pushing to regain bullish momentum.
While Bitcoin (BTC) experienced a modest 3.2 percent decline over the past week, stabilizing around $65,000, XRP defied the trend with a 2 percent gain, holding steady at about $0.49.
Recent data from CryptoQuant highlights a significant increase in Open Interest (OI) for XRP, reflecting its rising market value following updates on the Securities and Exchange Commission (SEC) settlement.
This surge in open interest suggests growing market confidence and heightened trading activity around XRP.
Rising open interest typically indicates that more investors are opening positions with the expectation of price increases. Consequently, this usually results in higher liquidity, benefiting traders by providing tighter bid-ask spreads and reducing slippage, thus enhancing overall market efficiency.
SEC lawsuit developments and strategic focus
XRP’s open interest started rising on June 11, and the expectations of a breakout could be related to developments in Ripple’s case against the SEC.
Amid this ongoing legal dispute, Ripple is intensifying its focus on expanding its influence in the realm of Central Bank Digital Currencies (CBDCs).
Santiment, a leading crypto data platform, noted that crowd sentiment on XRP has dipped to 2024 lows, suggesting a potential buying opportunity.
📉 Crowd sentiment has dropped significantly for XRP, Dogecoin, and Shiba Inu after their respective price drops. Patient traders who have been waiting for the crowd to give up on these large cap altcoins may finally have their buy opportunity with FOMO at a 2024 low. pic.twitter.com/Pf65huJJnd
— Santiment (@santimentfeed) June 17, 2024
This sentiment is echoed by X (formerly Twitter) user and analyst, BCBacker, who pointed out that on higher time frame charts, XRP is displaying patterns similar to those seen before rallies in 2017 and 2021.
Still looking interesting for XRP. After reaching historical extremes, a massive weekly bearish divergence shows up for TOTAL vs XRPUSD right at resistance. MACD hits historical extreme, and the MACD flip has begun. When these events occurred in 2017 and 2021, XRP outperformed. https://t.co/T3z2dH2Uhx pic.twitter.com/ArnKeWcgoZ
— Blockchain Backer (@BCBacker) June 18, 2024
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 suggests a cautious stance among some traders, reflecting the inherent volatility and uncertainty in the market. Investors should weigh these outflows against the backdrop of rising open interest and consider both bullish signals and potential risks.
XRP price analysis
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, it is crucial for traders to maintain a balanced view of the market’s potential upsides and risks.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.