The price of Ripple’s (XRP) has recently jumped to $0.60, sparking renewed hope in the broader market. While it has since dipped below this level, various indicators hint that the token might rebound, similar to six months ago.
In March, XRP’s price surged to $0.72, and this analysis outlines how XRP might approach this level once again.
Growing Interest in Ripple’s Native Token
As reported by CryptoQuant, XRP’s Taker Buy/Sell Ratio climbed to 1.06 on September 21, aligning with the cryptocurrency’s ascent to $0.60. The very next day, the ratio fell to 0.88.
The Taker Buy/Sell Ratio reflects the volume of buys relative to sells in the derivatives market, with values exceeding 1 indicating a bullish outlook, while those below 1 suggest bearish sentiment.
Currently, the ratio has rebounded to 0.93, indicating that XRP traders might be regaining a bullish stance and that the recent downturn may be a short-lived event.
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Another factor indicating a possible bullish trend for XRP is Ripple’s Open Interest (OI). Open Interest signifies the total number of outstanding contracts in the derivatives market. An increasing OI suggests that traders are investing more capital into XRP, thus increasing their exposure to the cryptocurrency.
On the other hand, a drop in OI implies a reduction in net positioning, leading to liquidity being withdrawn from the market. As per Santiment data, XRP’s Open Interest has climbed to $710 million. This rising trend indicates that XRP’s price may recover from its recent losses due to heightened trader engagement.
XRP Price Forecast: Bullish Trends on the Horizon
Examining the daily chart, the token appears to be encountering resistance around $0.60, prompting a decline to $0.58. Nonetheless, the same chart indicates substantial support at $0.57, implying that the altcoin may hold above this level in the near term.
A longer-term perspective reveals that $0.70 is a crucial zone that previously attracted significant liquidity. Should XRP experience heightened buying pressure, it could potentially surpass the upper resistance at $0.67 and head towards $0.70.
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If XRP breaks through the $0.67 resistance level, its subsequent significant target may be a potential 20% increase towards $0.70. However, if the cryptocurrency faces pushback, it may fall short of this target and drop down to $0.52.
Disclaimer
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