Source: Cointelegraph
Original: “XRP Futures Open Interest Surges by 32%—Are Traders Bullish or Bearish?”
Key Points:
The price of XRP fell to an annual low of $1.61 on April 7, but has risen 25% over the past two weeks as the entire crypto market rebounded and XRP open interest surged.
The open interest for this altcoin surged by 32% between April 21 and 23, increasing from $3.14 billion to $4.13 billion, indicating a return of derivatives traders. The futures open interest rose in tandem with the price, suggesting bullish market sentiment, but data from Velo presents a different picture.
According to the negative premium of open interest, the XRP futures market still holds a contrarian bet against the rise in XRP prices. The funding rate remains close to 0, indicating that both bulls and bears are in a neutral state in the market.
In April, the cumulative trading volume difference in the spot market turned positive. This indicator measures the net difference between aggressive buy and sell trades across various exchanges. When this indicator turns green and rises above zero, it signifies increased buying pressure, with buy orders exceeding sell orders.
Despite the rising interest in the futures market, data suggests that XRP's price is still caught in a tug-of-war between bullish spot market activity and bearish perpetual futures.
Is XRP Destined for a Double-Digit Price Range?
Following the rise in XRP's price, the crypto investment community Sistine Research released a bold prediction, estimating that XRP's long-term target will be between $33 and $50. This prediction is based on a high time frame (HTF) symmetrical triangle, similar to the 2600% increase XRP experienced in 2017. The platform also suggested that optimistic targets could push the price to a range of $77 to $100.
Currently, XRP's price is $2.23, with a market capitalization of $131 billion. If XRP's target price is $33, the market cap would increase to about $2 trillion (a growth of over 1400%), surpassing Bitcoin's current market cap.
From a lower time frame (LTF) perspective, XRP is showing an inverse head and shoulders pattern, which may test the resistance range between $2.50 and $2.67. This resistance range aligns perfectly with the Fibonacci extension levels drawn from the neckline bottom to the head's lowest point.
Although the Relative Strength Index (RSI) is nearing the overbought zone, suggesting that prices may temporarily stagnate in the current range, further observation is still required.
Related: Prosecutors Seek Over Six Years in Prison for Mango Markets Hacker
This article does not contain any investment advice or recommendations. Any investment and trading activities involve risks, and readers should conduct their own research before making decisions.
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