XRP’s open interest on Binance has hit yearly lows, potentially setting the stage for a new rally. Key support levels to watch include $2.20-$2.40 in the short term and $1.85 as a major structural support. A potential breakout could target $4.20-$4.50 if resistance levels are cleared and open interest increases.
What to Know:
- XRP’s open interest on Binance has hit yearly lows, potentially setting the stage for a new rally.
- Key support levels to watch include $2.20-$2.40 in the short term and $1.85 as a major structural support.
- A potential breakout could target $4.20-$4.50 if resistance levels are cleared and open interest increases.
XRP is showing signs of a potential bullish reversal as open interest on Binance has reset to yearly lows, creating room for a significant uptrend. The recent market crash on October 10 triggered liquidations and provided a clean slate for long-term holders. CryptoQuant analyst Pelin Ay suggests that the market structure now resembles the setup before XRP’s surge to $3.55 in July.
XRP’s open interest (OI), which tracks active futures contracts, has fallen to levels last seen in April/May, while XRP is trading at a higher price point. The recent drop to $494 million, down from an October 6 peak of $1.3 billion, indicates a potential shift in market dynamics. This suggests that either leverage has been flushed out, paving the way for a price increase, or traders have shifted focus from futures to spot trading.
Ay has identified critical support and resistance levels for XRP. The $2.20 to $2.40 range is seen as a short-term buying zone, and as long as XRP holds above this level, the bullish trend remains intact. On the upside, the $2.80 to $3.00 band is the initial resistance to watch, with a breakthrough potentially leading to a rapid momentum build toward the $3.30 to $3.50 range.
Clearing the $3.30 to $3.50 resistance, combined with rising open interest, could trigger a full breakout phase for XRP. Based on previous patterns, a realistic price target of $4.20 to $4.50 could be within reach if this scenario unfolds. Additionally, XRP’s price strength despite low OI suggests that short sellers may be trapped, potentially fueling the next leg up if OI starts to increase.
While the analysis points to a bullish outlook, traders should remain aware of broader market conditions and potential regulatory developments. The crypto market, including Bitcoin, Shiba Inu (SHIB), and the potential approval of spot ETFs, can influence XRP’s price. Investors should also monitor regulatory news related to Ripple and XRP, as these events can significantly impact market sentiment.
Related: XRP Price: $12M Max Pain for Bears
Source: Original article
Quick Summary
XRP’s open interest on Binance has hit yearly lows, potentially setting the stage for a new rally. Key support levels to watch include $2.20-$2.40 in the short term and $1.85 as a major structural support. A potential breakout could target $4.20-$4.50 if resistance levels are cleared and open interest increases.
Source
Information sourced from official Ripple publications, institutional research, regulatory documentation and reputable crypto news outlets.
Author
Ripple Van Winkle is a cryptocurrency analyst and founder of XRP Right Now. He has been active in the crypto space for over 8 years and has generated more than 25 million views across YouTube covering XRP daily.
Editorial Note
Opinions are the author's alone and for informational purposes only. This publication does not provide investment advice.
