XRP appears to be gearing up for a turnaround after experiencing a month-long decline, with weekly gains of 5.26% and daily gains of 4.59%, laying the groundwork for a potential rally.
The anticipated uptrend could be triggered by a rebound from the mid-range level of the descending channel, a critical juncture showcasing accumulated momentum.
XRP Shows Positive Signals for Impending Rally
Since November 2023, XRP has been moving within a descending channel, evident in the daily chart. Presently, there are indications of a breakout, signaling a shift in the coin’s price movement.
A descending channel is commonly viewed as a bullish formation, characterized by price oscillations within two primary zones while moving downward, ultimately culminating in a breakout.
The current pattern for XRP aligns closely with this projected scenario.
If there is heightened buying activity around the mid-range support level (depicted by a black line), it could potentially breach the upper resistance line of the channel, paving the way for a target price of $0.74 in the short term.
An in-depth analysis from CryptoCrypto implies that XRP is on the brink of a breakout.
Surging Interest in XRP
Recent data provided by CryptoQuant indicates a resurgence in interest surrounding XRP. Following a sharp decrease in active addresses on September 9th, there has been a substantial uptick to 8.9k active addresses.
This upsurge in active addresses has contributed to driving prices higher, mitigating significant losses witnessed between September 5th and 6th.
Furthermore, both the exchange reserves and XRP’s price have been on the rise simultaneously.
This trend typically signifies robust demand outstripping available supply, despite increased deposits on exchanges for potential trading purposes.
These collective signals point to heightened buyer enthusiasm, positioning XRP favorably for a prospective upturn towards the aforementioned target price.
Increased Open Interest Points to Potential Surge
Open Interest, which reflects the total number of outstanding derivative contracts such as Futures or Options, indicates mounting market momentum and trader accumulation when it rises.
As of the latest data, XRP’s Open Interest, as reported by Coinglass, surged by 5.7% in the past 24 hours, reaching $625.48 million despite prior declines.
This uptrend suggests increased buying pressure that could sustain a rally towards the critical price level of $0.74.
In the event of a reversal in this upward momentum of Open Interest or other crucial metrics, XRP might retrace towards the mid-range or even the lower boundary of its descending channel.