- XRP exhibited strong potential to break $2.50, backed by resilient price action and support levels
- Bullish sentiment grew on the back of a 72.28% long position ratio and strong derivatives activity
XRP recovered well on the price charts after its recent bout with volatility, with the altcoin sparking traders’ interest. At press time, XRP was trading at $2.45, following a hike of 2.14% in the last 24 hours.
Hence, the question – Will XRP be able to break the $2.50 resistance level and trigger a rally? With key levels in play, especially given the formation of a bullish pattern, there is a growing expectation of further upside potential.
Can XRP continue its uptrend?
XRP, at the time of writing, was forming an inverted head and shoulders pattern – A classic signal of bullish momentum. The pattern consists of three significant points – The left shoulder, the head, and the right shoulder. The head was formed at the $1.99-level, while the right shoulder occurred near $2.20.
The neckline, which plays a critical role in confirming this pattern, lay at $2.45. A break above this neckline could open the door for a move towards $2.60 and possibly higher. If the price pushes through $2.50, the rally could extend further, with potential resistance near $3.00.
Source: TradingView
What does the long/short ratio say about XRP’s future?
The long/short ratio positions on Binance Futures lent another key insight into market sentiment. At press time, a remarkable 72.28% of traders held long positions, indicating strong bullish sentiment. What this means is that a majority of traders believe XRP’s price will continue to rise.
In fact, only 27.72% of traders are betting on a short-term decline.
This ratio is a sign of the growing confidence in XRP’s potential to break through resistance levels. Therefore, bullish sentiment might continue to fuel the positive outlook for its price.
Derivatives data analysis – What’s the market telling us?
The derivatives market offered another clue regarding the asset’s potential for growth. The altcoin’s volume surged by 60.98%, with the same climbing to $4.52 billion – All while the Open Interest flashed figures of $3.97 billion.
This surge in trading activity hinted at greater interest in XRP – A sign of confidence from traders.
Additionally, Options volume rose by an astounding 167.91%, further supporting the idea that market participants have been speculating about its price hike. These metrics revealed that the derivatives market is actively backing XRP’s bullish outlook.
Source: Coinglass
Based on the technical analysis, long/short ratio, and derivatives data, it seems likely that XRP will break through the $2.50-resistance. The prevailing market conditions, including growing interest and positive sentiment, suggested that a rally may be imminent in the near term.
