- XRP’s $1 Billion Open Interest Underlines Growing Market Activity Driven by Regulatory Optimism.
- Increase in foreign exchange reserves and long liquidations call for caution in a bullish environment
XRP The token’s open interest has soared to $1 billion, raising questions about what is fueling the recent rise. With growing speculation around regulatory clarity and due to growing interest from institutions, XRP is now receiving a lot of attention. However, is this enough to trigger a bullish breakout?
At press time, XRP was trading at $0.5879, down 6.50% over the past 24 hours. The rise in Open Interest, however, highlighted an increase in activity across the market. By extensionthis rise indicates that traders are now betting on significant future price movements.
It is therefore essential to examine what is driving the altcoin’s momentum. Regulatory developments and institutional investments are likely key factors, but is there something else happening as well?
XRP Price Action – Key Levels to Watch
Looking at the charts, price action at press time showed that the token was facing strong resistance at $0.6222. This level has become a critical barrier for any bullish progression. However, strong support lies at $0.5617, providing cushion if bearish pressure increases on the charts.
The Bollinger Bands appeared to be tightening, suggesting an imminent price movement. Additionally, the RSI at 56.94 highlighted neutral market conditions.
Therefore, traders should monitor these levels closely as breaking the resistances could trigger a larger price rally.
Source: TradingView
Foreign exchange reserves – Could selling pressure increase?
It is also worth highlighting here that the exchange reserves increased by 0.34% to 3.1258 billion tokens in the last 24 hours. Such a rise often indicates higher selling pressure, especially as more tokens are moved to exchanges for potential liquidation.
Investors should therefore be careful. Although market interest in XRP has increased recently, rising reserves mean some holders may be preparing to sell.
Source: CryptoQuant
XRP Liquidations – Are Long Positions at Risk?
Finally, liquidation data revealed that over $1.35 million was liquidated in the last 24 hours, mostly from long positions. On Binance alone, long liquidations totaled $323.77K.
Therefore, although there is optimism about a breakout, market resistance has led to the unwinding of overleveraged positions. This highlights the potential risk for bullish traders if the altcoin fails to maintain its momentum.
Source: Coinglass
Read Ripple (XRP) Price Prediction 2024-25
In conclusion, the rise of Open Interest, coupled with increasing involvement from institutions and retailers, indicates upside potential.
However, rising foreign exchange reserves and protracted liquidations highlight the need for caution. Although breaking above $0.6222 is key to any sustainable rally, traders should prepare for volatility as the altcoin breaks through these critical levels.
