- Ripple’s XRP has surged nearly 20% recently, driven by a 75% increase in futures open interest and strong options market activity, signaling renewed investor confidence.
- If it breaks through key resistance levels, XRP could rally by 50%, potentially reaching a three-year high of $1.10.
Ripple’s XRP is seeing renewed enthusiasm from investors, with a recent 20% price spike and a strong uptrend in futures open interest. Amid market corrections in leading cryptocurrencies like Bitcoin and Ethereum, XRP is showing signs of a potential 50% rally if it breaks through key resistance levels. Here’s a closer look at why XRP could be on the cusp of a major breakout.
Rising Open Interest Signals Investor Confidence
XRP’s impressive 20% increase places it among the top-performing cryptocurrencies, second only to Dogecoin in recent gains within the top ten by market capitalization. This surge reflects heightened investor interest, which is further underscored by a 75% rise in XRP’s futures open interest. Since November 5, open interest has grown from $681 million to over $1.2 billion, indicating a fresh influx of capital to support XRP’s upward momentum.
Futures open interest refers to the total outstanding contracts in the derivatives market. When it grows alongside prices, it signals that new capital is entering to sustain the uptrend. This trend, combined with bullish sentiment in the options market, suggests that investors are optimistic about XRP’s price potential.
Options Traders Set to Defend $0.72
The options market also reveals bullish sentiment around XRP. As per Amberdata, nearly 5.6 million call options are concentrated at a strike price of $0.72 for the November 29 expiry. This concentration suggests that traders expect XRP to surpass this price and are motivated to defend it. Call options give traders the right to buy XRP at the agreed strike price, and such heavy betting on $0.72 shows confidence in an upward move past this level.
Key Technical Levels to Watch
From a technical perspective, XRP has recently moved above its 100-day Simple Moving Average (SMA) and is testing a crucial neckline resistance at $0.7440. This resistance is part of an inverted head and shoulders pattern, which is considered a bullish signal in chart analysis. If XRP manages a strong close above $0.7440, analysts predict a 50% rally could bring it to a high of $1.10—levels not seen since November 2021.
Along its ascent, XRP will need to overcome additional resistance levels at $0.8547 and $0.9380. Momentum indicators like the Relative Strength Index (RSI) and the Awesome Oscillator (AO) are both above neutral, showing growing bullish strength.
Caution for Traders
While XRP’s outlook is promising, a sustained move below $0.4893 would invalidate the current bullish thesis. Traders should watch this level closely to manage risk as XRP navigates its next potential breakout phase.
Conclusion
With growing open interest, strong options market activity, and encouraging technical patterns, XRP appears set for a potentially explosive rally. If it clears the $0.7440 resistance, a 50% increase could be within reach, attracting further interest in the remittance-focused token.
