According to CryptoPotato, Ripple's price has been trading within a narrow range of around $0.50 for the past week, raising questions about a potential massive move. From a technical perspective, two important metrics to watch are the ratio between long and short positions and open interest. Data from Coinglass reveals that bulls currently dominate the market, accounting for 70% of total positions. This could be seen as positive news, indicating a positive sentiment in the market. However, it could also be a warning sign, as an excessive number of long positions can signal the risk of a 'long squeeze.'
In comparison, most other large-cap cryptocurrencies have a 50/50 ratio between long and short positions. Open interest can be used to gauge potential volatility, with larger numbers indicating higher volatility. In the past couple of weeks, open interest has been climbing slowly, suggesting a relatively calm market ahead.
However, one fundamental trigger that could impact technical analysis is the ongoing lawsuit between Ripple Labs and the US SEC. Positive developments in the case are likely to significantly improve XRP's price, while negative news could send the price tumbling. A few days ago, the SEC scored a minor victory when the court compelled Ripple to submit certain financial information, something the company had been fighting against.
