XRP Turns Bullish as Market Pressure Shifts in Favor of Buyers
XRP’s breakout from a prolonged downtrend has fueled bullish momentum, with increasing demand and market participation supporting its rally.
XRP has continued its recovery from recent lows, posting steady gains over the past few days. The upward trend has now pushed the token above the descending parallel channel that had kept its price bearish since January 16.
In the last 24 hours, XRP has climbed 6%, as a gradual increase in demand could create strong momentum to reclaim $3.
XRP Breaks Out: Bullish Reversal Signals Strengthening Demand
XRP’s 6% rebound in the past day has lifted its price above the descending parallel channel, which had been driving its decline since January 16. This bearish pattern occurs when an asset forms lower highs and lower lows within two downward-sloping parallel trendlines.
XRP Descending Parallel Channel. Source:
TradingView
If the price breaks above the channel’s upper trendline, it indicates a reversal or the start of a bullish trend. This signals a bullish shift in market sentiment toward XRP and a possible opportunity for upward momentum if demand is sustained.
Also, the altcoin’s rising Chaikin Money Flow (CMF) indicates capital inflow into the XRP spot markets. At press time, this indicator, which tracks how money comes in and out of an asset, is above zero at 0.08.
XRP CMF. Source:
TradingView
A positive CMF reading like this indicates mild buying pressure, suggesting that XRP accumulation is slightly stronger than distribution. If this trend continues, it could drive up XRP’s value over the next few days.
Furthermore, the token’s rising open interest in its futures market reflects the resurgence in demand for XRP. This is currently at $1.24 billion, climbing 20% over the past five days, during which time XRP’s price has risen by 13%.
XRP Open Interest. Source:
Santiment
Open interest refers to the total number of outstanding derivative contracts, such as futures or options, that have not been settled.
As observed with XRP, when an asset’s price climbs with open interest, it indicates strong market participation. It confirms the strength of XRP’s uptrend, as new money is entering the market to support higher prices.
XRP Bulls in Control—Will Profit-Taking Start?
XRP’s successful break above its descending parallel channel strongly confirms its price rally of the past few days. If bullish pressure persists and XRP continues to record new demand, it could extend its current gain and climb toward its all-time high of $3.40.
XRP Price Analysis. Source:
TradingView
On the other hand, if profit-taking resumes, XRP could lose its recent gains and fall back within the descending parallel channel. In this scenario, the altcoin could trade at $2.13.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
US PPI report to test Bitcoin, gold and Nasdaq as December rate hike looms
Nvidia falls to its lowest valuation in 14 years! "Super bull" Tom Lee calls for bottom fishing, retail investors are buying more as it drops, but Wall Street is divided
After the market opened on Thursday, retail investors went against the trend and bought up Nvidia, with net purchases reaching $111 million in just half an hour, setting a record for the same period. Investors such as Tom Lee have publicly supported the company, with institutions optimistic about strong order backlogs extending to 2028, robust revenue growth, and opportunities created by declining valuations. Meanwhile, institutions like Bernstein and Goldman Sachs have become more cautious about Nvidia's outlook, with concerns focusing on management succession and technological leadership following Jensen Huang's departure.
Jane Street boosts Fidelity Bitcoin ETF stake 8x in Q3, trims BlackRock IBIT
From SpaceX to Anthropic, the market has new strategies for dealing with tech giants' IPOs
The market's response strategies to major listings are currently centered around "index inclusion expectations": the new regulations allow mega IPOs to be included in the six major indices within 15 days, triggering concentrated buying by passive funds. Investors are positioning themselves in advance and using options to hedge and amplify buying power. However, Anthropic has a free float of only about 6%; shares available for sale by employees on the first day and privately placed shares with no lock-up period may create supply pressure. On the other hand, index arbitrageurs are facing a rare opportunity.
Crypto prices
More
