XRP leads crypto weekend gains fueled by surging open interest
2024.09.29 13:59
XRP (XRP) price was up 5% to trade at $0.6278 on Sept. 29. This is part of a prevailing recovery that began on Sept. 6 and has seen the remittance token rise more than 10% over the last 30 days, fueled by a significant increase in its open interest.
Data from Cointelegraph Markets Pro and TradingView shows XRP rose from a low of $0.5027 on Sept. 6, climbing as much as 26% to an intraday high of $0.6335 on Sept. 29.
BTC/USD daily chart. Source: TradingView
The total crypto market capitalization is up 0.4% to $2.29 trillion. As such, XRP price performance over the last 24 hours has seen it become the third-highest gainer among the top-100 cryptocurrencies by market value.
Top gainers Sept. 29. Source: CoinMarketCap
Traders are increasingly betting on XRP to see “significant price movements”
“XRP has shown significant price movements with predictions and immediate targets around $0.66,” declared crypto YouTuber Raajeev Anand in a Sept. 29 post on X.
“XRP could see a substantial increase, aiming for targets like $2 or even much higher figures like $4.2 or $9.98 due to bullish patterns observed in its chart.”
Anand explained that the market sentiment around XRP has been largely positive. Analysts point to formations like a breakout from a symmetrical triangle, a golden cross, and other bullish indicators suggesting strong momentum for further XRP price increases.
XRP’s price action on the weekly timeframe reveals a bullish breakout from a symmetrical triangle that has persisted since 2020. A sustained rally above this chart formation could see XRP price rise toward the bullish target of the prevailing chart pattern at $2.0.
XRP/USD weekly chart. Source: TradingView
“The anticipation is fueled by [several] technical signals, indicating a robust bullish trend,” Anand added.
One of these indicators is the relative strength indicator (RSI), which has sent a rare bullish signal on the monthly chart, according to pseudonymous analyst Jadee_757.
The analyst shared the following chart in a Sept. 29 post: “RSI is peeking above the 7-year trendline!”
“If we close above next week, this will be the most BULLISH thing to happen in the last 7 years! ”
XRP monthly RSI. Source: Jaydee_757
Meanwhile, another crypto analyst, Captain Faibik, told his over 96,000 followers on X that the XRP price had completed and broken out of the falling wedge, confirming a massive breakout for the token’s price toward $3.9. However, they set the short-term target to $2.3.
Source: Captain Faibik
Related: Indian Supreme Court recovers YouTube account from XRP scammers
XRP open interest hits five-month high
The surge in the price of Ripple’s XRP on Sept. 29 comes after a significant jump in its open interest (OI). Open interest is a key metric that traders and analysts use to assess market sentiment and anticipate future price movements.
XRP’s IO started rising on Sept. 7, rising approximately 67%, to reach $932.3 million on Sept. 29, in tandem with the price. The last time XRP’s open interest reached these levels was on April 12, 2024.
XRP open interest across all exchanges. Source: CoinGlass
Note that when prices rise along with an increase in OI, that is often indicative of a trend that is probably going to continue.
Additional data from CoinGlass reveals increasing demand for leveraged long positions in XRP over the last few days, as indicated by the perpetual futures funding rate.
XRP average perpetual contracts 8-hour funding rate. Source: CoinGlass
Note that the current 0.0113% eight-hour rate translates to a 0.23% cost over a seven-day period, which is significant for traders building futures positions.
Increasing funding rates typically suggest that futures traders are bullish, expecting future price increases, which may indicate a continuation of the uptrend.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
