XRP is showing strong bullish signals, with futures open interest surging to a 5-month high. Traders are increasingly placing bets on XRP's upward trajectory, fueled by positive funding rates and key technical indicators.
XRP Futures See Massive Inflow
Cumulative open interest in XRP perpetual futures on major exchanges briefly reached 800 million XRP, the highest since January 19th, according to Velo data. While currently at 743 million XRP, this still represents a significant 33% increase since June 22nd, when XRP hit an interim price bottom of $1.90.
Open interest reflects the number of active futures contracts. A rising open interest typically signals new money entering the market.
Bullish Sentiment Drives XRP
The surge in open interest appears driven by traders seeking bullish long positions. Perpetual funding rates have remained consistently positive, sometimes exceeding an annualized 10%, indicating strong demand for long exposure. This means those betting on XRP to rise are willing to pay those betting against it.
Further confirmation of bullish sentiment comes from Binance's XRP/USDT market, where the top trader long/short ratio stands at 1.90. This means there are nearly twice as many long positions open as short positions.
Technical Analysis Supports Further Gains
XRP recently hit a 45-day high, reaching $2.83, levels not seen since May 23rd. The 'Guppy' multiple moving average indicator, which combines short-term and long-term exponential moving averages (EMAs), has flashed a bullish signal. This suggests the path of least resistance is now upward, potentially leading to a rally towards the May 14th high of $2.649.
What's Next for XRP?
While the spot price of XRP has yet to experience significant bullish volatility, the strong momentum in the futures market and positive technical indicators suggest a potential breakout. Traders should closely monitor key resistance levels and be aware of potential pullbacks. Will XRP reach $3 soon? The market is watching closely.