$XRP Open interest in XRP is approaching $5 billion. Meanwhile, the cryptocurrency's price continues to consolidate around $2.3
Ryan Li, the chief analyst at Bitget Research, assessed the cryptocurrency's position and shared what to expect from XRP in the near future. Here is the forecast the expert shared.
“This spike indicates a possible strengthening of momentum as market participants prepare for a decisive movement,” our interlocutor is confident.
The narrow consolidation range of XRP's price, Ryan Li noted, is a frequent precursor to breakout scenarios.
Combined with sustained buying pressure in the spot market, such behavior of the cryptocurrency's price may indicate growth potential, especially if short positions come under attack.
“Historically similar situations with XRP have already led to sharp rallies, increasing the likelihood of a similar development,” he noted.
At the same time, the direction of the cryptocurrency's price movement remains uncertain. Without a clear trigger, such high open interest could increase volatility both upwards and downwards.
“In the case of a bullish impulse, a short squeeze may be triggered, while profit-taking or negative macroeconomic factors may cause liquidations and put pressure on the price,” warned Ryan Li.
Investors, according to the expert, should closely monitor external factors such as progress in the development of the XRP Ledger (XRPL) and news related to the launch of ETFs, as they could significantly impact XRP's price movement in the near term.