In the past month, XRP has been on a staggering bull run, skyrocketing by 165%. This upward momentum persists, with the cryptocurrency recording a further 24% increase within 24 hours. If this trend continues, XRP may soon exceed its previous all-time high.
To assess the potential next moves for XRP, CryptoCrypto has conducted an in-depth analysis of critical market indicators and patterns.
Approaching the Historic Peak
At the current time, XRP has hit $1.4332, a level not witnessed since September 2021, demonstrating revived interest and robust market demand.
The cryptocurrency is now only $0.5337 away from its all-time high of $1.9669. Should the current buying spree persist, XRP stands a good chance of breaking through this milestone.
Nonetheless, any slowdown in the current momentum could trigger a retracement towards a critical support level at 0.9361, as highlighted on the chart.
Market indicators overwhelmingly favor the bulls, indicating a high likelihood of XRP making a significant push towards its all-time high in the coming days.
Record High Open Interest
XRP’s Open Interest has hit an all-time high of $2.47 billion, marking its highest level since inception, according to Coinglass. This milestone follows a 32.41% surge in Open Interest over the past day, reflecting increased market activity and demand.
Open Interest, a metric measuring unsettled derivative contracts on an asset, serves as a crucial gauge of market sentiment. The soaring levels of XRP’s Open Interest in this context signal robust bullish sentiment.
This surge is further bolstered by a series of short liquidations. In the last 24 hours, short positions worth $14.51 million were forcibly closed, outpacing long liquidations.
This cascade of liquidations was likely sparked by a sharp 177.99% surge in trading volume, now standing at $21.59 billion.
While overall market sentiment leans heavily in favor of the bulls, resistance is emerging as certain traders lock in profits, creating temporary obstacles for XRP’s upward momentum.
Profit-Taking Halts Rally
There has been a significant influx of XRP into cryptocurrency exchanges, with Coinglass Exchange Netflow showing a net positive value of $23.72 million.
This movement signals that market participants, particularly spot traders, are moving XRP to exchanges to capitalize on profits. Such actions often indicate a brief pause in bullish momentum.
However, if this selling pressure is temporary, XRP could resume its upward trajectory and position itself to surpass its previous all-time high.