- Should it maintain its current momentum after breaking out of its descending channel, XRP can reach $0.74.
A rise in active addresses and a decline in supply underpin the surge, indicating strong trader interest.
As a seasoned researcher with years of experience analyzing the crypto market, I am cautiously optimistic about XRP‘s potential rise. The current momentum, supported by increased active addresses and a decline in supply, suggests a strong trader interest that could propel XRP towards my estimated target of $0.74.
XRP appears poised to turn around its monthly losing streak, showing a weekly increase of 5.26% and a daily rise of 4.59%, suggesting a potential surge might be on the horizon.
The potential rally could stem from a bounce off the mid-range line of the descending channel, a critical point of accumulated momentum.
XRP signals the first rally sign
Since November 2023, XRP has been trapped inside a downward trending channel on the daily chart. However, recent developments suggest a potential breakout, hinting at a change in its price movement pattern.
As a researcher studying market trends, I often find myself analyzing a descending channel, which is typically viewed as a positive or bullish pattern. This pattern is defined by recurring price movements within two primary areas, albeit with an overall downward trend. The ultimate outcome of this pattern is usually a breakout, signaling a potential shift in the market’s direction.
XRP’s current pattern aligns well with this expectation.
Should the intermediate support level (represented by a black line) face increased buying activity, it might surpass the channel’s upper resistance boundary. In this case, the price may potentially reach a short-term goal of approximately $0.74.
An in-depth analysis by AMBCrypto suggests that XRP is prepared for a breakout.
Growing interest in XRP
According to recent information from CryptoQuant, there’s been a renewed enthusiasm for XRP. After a notable drop in active users on the 9th of September, we saw a substantial increase to approximately 8,900 active users.
The rise in active addresses has contributed significantly to pushing prices upwards, effectively compensating for the significant losses that occurred from the 5th to the 6th of September.
Moreover, both the exchange reserve and the price of XRP have been rising concurrently.
This pattern usually signals a high demand that outstrips the current supply, even after additional funds have been stored on exchanges with the intention of trading.
Collectively, these signs point to significant buyer enthusiasm, making it plausible that XRP may surge towards the previously mentioned goal.
Open Interest pushes surge potential
The rising figure of Open Interest, which represents the count of outstanding derivative agreements such as Futures or Options that haven’t been settled yet, indicates a surge in market activity and trader interest, as an increase suggests more traders are accumulating these contracts.
Currently, as we speak, the Open Interest for XRP – as reported by Coinglass – has increased by 5.7% over the past 24 hours, amounting to approximately $625.48 million, even after previous drops in value.
Read XRP’s Price Prediction 2024–2025
This upward trend indicates an increase in purchasing actions, potentially sustaining a further advance toward the significant price point of around $0.74.
As a researcher, I posit that should the current upward trend in Open Interest or other critical indicators show signs of weakening, there’s a possibility for XRP prices to retreat towards the middle or even the lower band of its downward channel.
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2024-09-14 13:11