XRP Price Analysis: $3.76 B Open Interest Fuels Rally to $2.18
- XRP price has rebounded to $2.19 from its monthly low of $1.93 on June 22.
- Positive funding rate and falling exchange reserves show bullish bets and shrinking sell-side liquidity.
Ripple’s native token, XRP, price has rebounded to $2.19 from its monthly low of $1.93 on June 22. However, the token has been stuck within the $2 and $2.20 range recently. XRP recent rebound comes alongside a spike in open interest, which reached $3.76 billion, suggesting a wave of trader activity and interest.
According to CoinGlass data, XRP’s open interest rose by 3.11% in the past 24 hours, reaching $3.76 billion. The action suggests the traders are choosing holding positions rather than exit quickly—either expecting further growth or preparing for pullbacks.
However, the steady climb in both price and open interest makes this rise more notable. A price spike alone can result from short-term activity, without much follow-through. But when open interest climbs alongside it, that typically shows more traders are entering and holding positions, suggesting they expect the trend to keep going.
New Capital Flows In, Price Momentum Builds
The market’s current behavior indicates that new capital is entering. When this lines up with increasing prices, it can lead to more forceful movement in one direction. If buying pressure holds, the added liquidity may support continued upward movement. However, there’s still a risk. If sentiment shifts, traders might pull out quickly, causing steep price declines because of the high number of active positions.
Another sign that optimism is rising is the OI-weighted funding rate turning positive. That generally indicates a transition into a bullish perspective where the traders are now paying for maintaining the long positions.
Meanwhile, a massive outflow of XRP from leading exchanges attracted market attention. Data from CryptoQuant shows that reserves fell by $12.4 billion for the last week. Such a drop generally reflects investors are shifting funds into long-term storage accounts, decreasing supply on the spot market and potentially lowering sell pressure.
XRP Eyes 50-Day EMA — Can It Break $2.34 Next?
At the moment, XRP is approaching its 50-day exponential moving average. If the cryptocurrency manages to breach above that, it can test the high set on June 16 at $2.3389. A breakout above that could present a test for $2.47, the last seen on May 23. If XRP breaks below the 200-day EMA, however, the next robust support could be seen at $1.9299.
The momentum indicators such as RSI stands at 50.15, indicating neither overbought nor oversold conditions. Meanwhile, the MACD shows a mild recovery, with the MACD line slightly above the signal line and positive histogram bars forming. The CMF at 0.18 confirms ongoing buy interest.
Despite these positive signals, analyst Peter Brandt pointed out the emergence of a head-and-shoulders pattern on the weekly chart—one often linked with downtrends. He identified $1.8790 as the neckline for the structure and described the April 7 candle as an exception due to broader market activity.
However, Peter cautioned against jumping into bearish conclusions. He maintained that as long as XRP stays above the neckline, no confirmation for a bear reversal can be arrived at. He also mentioned that he can reverse his position only if the price closes below the level of $1.8790.