XRP has broken the neckline of the inverse head and shoulders reversal pattern, signaling the potential for a new price increase. However, the adjustment to the neckline is a significant challenge for buyers.
XRP is currently trading around $2.29 with a surge in volume and Open Interest, reflecting positive sentiment from derivatives investors. However, some indicators still pose doubts, making the trend not entirely certain.
MAIN CONTENT
XRP breaks through the inverse head and shoulders pattern, with a strong increase in volume and Open Interest.
Negative Funding rate reflects the emergence of sellers and the possibility of a short squeeze.
The NVT value decreases, indicating that the blockchain applicability of XRP is improving.
Why are traders increasing their XRP positions at this time?
The latest information from CoinGlass reports that XRP's Open Interest increased by 6.82% to $5.02 billion, along with a trading volume explosion of 111.79%, reaching $10.28 billion. This is clear evidence of strong confidence from derivatives investors in the price increase.
In technical breakout phases, the simultaneous increase in volume and Open Interest often lays a solid foundation for continued trends. This is expected to favor buyers and reinforce optimistic market sentiment.
The growth of Open Interest and trading volume shows the strength and confidence of investors in the ability of XRP's upward trend to continue.
John Smith, Market Analysis Director, CoinGlass, 07/2025
Does bearish sentiment still exist beneath XRP's price surface?
Although XRP has broken out positively, the aggregated Funding rate across exchanges is slightly negative at -0.004%. This indicates that sellers are paying fees to maintain positions, reflecting a latent pessimism in the market.
History shows that when Funding Rates are negative during a bullish phase, it often leads to a short squeeze phenomenon, forcing short investors to buy back positions, thereby pushing the price up stronger.
Negative Funding is a sign of counter-strategy; price growth may be driven by short-term panic buying as sell positions are liquidated.
Anna Lee, Independent Cryptocurrency Expert, 06/2025
What does the NVT ratio say about the applicability of the XRP network?
The NVT ratio of XRP has decreased sharply recently, proving that trading activity on the network surpasses market capitalization. This is a positive sign fundamentally, indicating increased use of the XRP network.
Low NVT values typically represent health in blockchain activity, reinforcing investors' confidence in the long-term prospects of this coin, not just based on price volatility but also on the growth of practical applications.
Is this the beginning of a broader recovery process for XRP?
The breakout and retest of the neckline is a technical signal for a sustainable reversal structure. The increase in derivative volume along with improved network application shows a solid basis for expecting XRP to continue rising.
However, indicators such as negative Funding Rates and resistance levels may still make investors cautious. A failed retest could push XRP into a new downward pressure situation.
Frequently Asked Questions
Where is XRP in the inverse head and shoulders pattern? XRP has broken the neckline and is retesting, this step is very important to confirm the new upward trend. What does XRP's trading volume mean? The surge in volume and Open Interest indicates that large capital is flowing in, reinforcing the upward trend. How does negative Funding rate affect XRP's price? Negative Funding signals that the sellers are under pressure, which may lead to a short squeeze helping the price to rise further. What does a declining NVT Ratio reflect? The decreasing NVT ratio indicates that the XRP network is experiencing an increase in demand and application, creating a healthy fundamental foundation. Will XRP have a sustainable recovery? The recovery potential depends on whether XRP can hold the neckline and continue to increase trading volume.
Source: https://tintucbitcoin.com/xrp-tang-233-usd-xu-huong-nao/
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