There has been a significant surge in interest surrounding XRP, with optimistic sentiment prevailing in both Crowd and Smart Money indicators.
According to Market Prophit’s evaluation, this positivity is in line with robust technical patterns, indicating a possible significant upward movement for the cryptocurrency.
Currently, XRP is being traded at $2.30, marking a 2.22% increase in the last 24 hours and hovering just beneath a crucial resistance level.
Factors Fueling XRP’s Momentum
Recent price action of XRP has formed a bullish pennant flag pattern, typically indicating a consolidation phase before a potential breakout.
This pattern, paired with consistent price movements, is capturing the attention of traders.
Notably, $2.30 has emerged as a critical resistance point. A breakthrough above this could open the path for XRP to target $3.00, a significant psychological level.
However, a failure to surpass this level might result in extended consolidation within the pennant, delaying any substantial upward momentum.
Active Addresses: A Bullish On-Chain Signal?
Furthermore, on-chain data has shown positive indications of an increase in network activity. The number of active XRP addresses has climbed by 1.37%, reaching 31K.
This rise signifies heightened user involvement and transactional activity, both commonly seen before price surges.
As a result, the uptick in active addresses could imply growing confidence among traders, reinforcing the argument for a bullish breakout.
Conflicting Signals from Technical Indicators
Looking at the technical side, the Stochastic RSI is currently at 21.68, firmly situated in the oversold territory, indicating a potential reversal as buying pressure increases.
Additionally, the MACD stands at -0.0631, suggesting bearish momentum. Nevertheless, the narrowing gap between the MACD line (0.1883) and the signal line (0.1252) presents a convergence that may imply diminishing selling pressure.
Overall, these indicators present a mixed outlook, leaning towards a probable upward price movement when momentum shifts positively.
Surge in Market Sentiment and Open Interest
The rallying market sentiment is further bolstered by a significant increase in Open Interest, soaring by 47.57% to $2.90 billion.
This substantial surge indicates heightened trader participation, reflecting escalating expectations for notable price shifts. In combination with the bullish pennant formation and the uptrend in active addresses, this surge reinforces the bullish narrative.
Is a Rally on the Horizon?
The prevailing bullish sentiment, increasing on-chain engagements, and promising technical patterns hint at a potential breakout above $2.30, leading to a surge in prices.
Given the right momentum, XRP could target $3 in the short term, marking this as a crucial juncture for traders to monitor closely.