During this period of relative stability in the cryptocurrency market, XRP traders utilizing the Binance platform have shown a bullish attitude by significantly increasing their long positions in the most recent four-hour period up to the current moment.
Coinglass, an on-chain analytics company, has reported that 76.54% of XRPUSDT traders on Binance have opted for long positions, while 23.46% have decided on short positions.
Influx of Long Positions on Binance for XRP
The substantial rise in long positions on Binance suggests that traders hold an optimistic view of XRP’s potential for price growth in the upcoming days.
Despite this surge in long positions, XRP has been encountering challenges in gaining traction around the robust support level of $0.52.
As of the latest update, XRP is hovering around the $0.529 mark, showing a slight price dip of 0.65% within the last 24 hours.
Nevertheless, market participants have been exhibiting caution, as the trading volume for XRP has decreased by half in comparison to the previous day.
Promising On-Chain Data for XRP
Undeterred by the market’s apprehension, the Futures Open Interest for XRP has displayed a positive growth of 2.3% over the past four hours, indicating an uptick in traders’ commitments and potentially signaling bullish prospects for XRP holders.
Currently, the primary liquidation thresholds are noted at $0.519 on the downside and $0.541 on the upside, with traders displaying high leverage at these levels, as per Coinglass statistics.
In a scenario where the market sentiment sours, causing XRP’s price to dip below the $0.519 level, approximately $10.21 million in long positions stands at risk of getting liquidated.
Conversely, if the sentiment improves and the price surges towards the $0.541 mark, around $8 million worth of short positions could face liquidation.
Furthermore, another optimistic signal from on-chain metrics is XRP’s Open Interest (OI)-Weighted Funding Rate, which currently stands at +0.0097% at present. This positive Funding Rate indicates a bullish sentiment, with long positions outpacing short positions.
Considering the Long/Short Ratio, Futures Open Interest, liquidation thresholds, and Funding Rate, it suggests that the bulls are presently in control, fostering expectations of a price increase.
Technical Analysis and Critical Levels for XRP
As per CryptoCrypto’s technical evaluation, XRP has been consolidating within a narrow range of $0.518 to $0.545 over the past three days, residing near the crucial $0.52 support level.
A breakout from this consolidation range will determine the direction for XRP’s price movement in the near future.
Historically, if XRP surpasses this range and closes a daily candle above $0.545, there is a strong chance of a 17% surge, potentially reaching $0.65.
Conversely, should XRP breach the lower end of the consolidation range, closing a daily candle below $0.515, a 12% decline to $0.455 could be anticipated in the coming days.