Over the past few days, the value of XRP has seen a slight decline, which aligns with the overall consolidation happening in the cryptocurrency market. While XRP has experienced a 1.78% increase in the last 24 hours according to CoinMarketCap, data from the past seven days shows a decrease of 8.68%. Despite this, several price metrics suggest the possibility of a significant upswing in the near future.
Crypto analyst Will Taylor, also known as Cryptoinsightsuk, has identified bullish momentum in XRP that could potentially drive its price up to $1.35. He highlighted two metrics on social media platforms that indicate this positive price movement.
One noteworthy metric is the addition of over $100 million in open interest on futures contracts to the XRP market. This substantial increase coincided with the circulation of fake news surrounding BlackRock’s XRP ETF filing. Additionally, XRP experienced a significant price jump of 16% to $0.75. Although the price spike has since dissipated, the amount of open interest has remained relatively stable.
Taylor suggests that the stability in open interest despite the price decline indicates the presence of short trade positions. He concludes that there are currently significant short positions on XRP, which could potentially lead to a cascade of stop losses and a subsequent fast move in the market.
Analyzing the price chart provided by Cryptoinsightsuk, it becomes evident that XRP has been forming lower highs and lower lows. However, there has been a recent bounce upwards, and the cryptocurrency is now approaching the descending upper trendline formed by the lower highs. A breakout above this trendline could mark the beginning of an uptrend for XRP.
Taking into account the current total crypto market cap of $1.3 trillion, this potential breakout could encourage traders to cover their open short positions or close them out by placing buy trades. Such actions might lead to a more aggressive breakout and potentially push XRP to move rapidly.
Furthermore, Cryptoinsightsuk points out a bullish divergence between the price of XRP and the overbought/oversold indicator RSI. This divergence indicates that bulls may regain control of the market, while bears may lose momentum. Based on these factors, Taylor predicts that XRP could reach his target range of $0.89 to $1.35.
Initially, Cryptoinsightsuk had set a daily countdown for XRP’s price blast-off to $1.06. However, the countdown has expired without the expected price surge. Nevertheless, Taylor remains confident that an upswing is inevitable.
While XRP has faced a recent decline, the presence of bullish indicators and potential market dynamics suggest a possible upward trajectory for the cryptocurrency. Traders and investors should monitor the key metrics closely to capitalize on any potential breakout and take advantage of the anticipated price increase in XRP.