Ripple’s XRP has increased by 3% in the last 24 hours and currently ranks first among the growth leaders in the market. The token's rally is accompanied by a surge in activity in the derivatives market, with XRP's open interest reaching a three-month high.
With the bullish sentiment strengthening, XRP may continue its upward trend in the short term.
XRP Leads Market Growth
XRP's open interest stands at $5.38 billion, having increased by 17% during the review period. This surge occurs despite a cooling market, which has seen a decline in total market capitalization by $14 billion in the last 24 hours.
The surge in XRP's open interest indicates increased investor engagement and a growing bullish sentiment around the asset over the past day. Open interest measures the total number of unsettled contracts in derivatives such as futures or options. When it rises alongside the price, it indicates the influx of new funds into the market.
In the case of XRP, the growth of both price and open interest indicates an increase in bullish positions, reinforcing the strength of the current rally.
Furthermore, technical indicators support this bullish outlook. On the daily chart, the moving average convergence divergence (MACD) indicators for XRP show that the MACD line (blue) significantly exceeds the signal line (orange). The MACD indicator identifies trends and momentum in the asset's price movement. It helps traders identify potential buy or sell signals through crossovers between the MACD and signal lines.
As with XRP, when the MACD line is above the signal line, it indicates bullish momentum, suggesting potential further price increases for the asset. Traders view this crossover as a buy signal. Thus, such a setup could potentially increase demand and price for XRP.
XRP is bouncing off key support, targeting the March high of $2.71
XRP is currently trading at $2.55, having bounced off support established at the $2.50 level. If this key support floor strengthens, it could push its price up to $2.71, which is the high reached on March 3. However, if sell-offs resume, this bullish outlook will be nullified. In that case, the token's price may break support at $2.50 and fall to $2.29.#BinanceSquare #TradeStories #Binance #Ripple #xrp $XRP
