Ripple (XRP) price continues its upward trajectory, trading at $2.40 on Monday

input: Ripple (XRP) price continues its upward trajectory, trading at $2.40 on Monday, fuelled by a widespread bullish surge spearheaded by Bitcoin (BTC) breaking past the $100,000 mark last week.

Cryptocurrency prices continue to rise on Monday, with Ripple (XRP) trading at $2.40 as Bitcoin trades above $100,000. Multiple buy signals suggest that XRP can extend the rally in the coming days, targeting $3.00.

XRP breaks above key resistance trendline

XRP’s price has broken above a long-term descending trendline resistance, as seen on the chart above. The uptrend above the trendline comes amid a major slump in exchange inflows from over 2 billion to 14.5 million XRP, according to CryptoQuant data.

As seen in the chart above, exchange inflows decreased drastically. Usually, falling exchange inflows signal decreased sell-side pressure, as investors prefer to hold onto their tokens in self-custody as opposed to moving them to exchanges.

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Meanwhile, the daily chart reveals a solid bullish structure supported by multiple buy signals. The SuperTrend recently shifted below XRP’s price, supporting the ongoing uptrend. This trend-following indicator signals when to buy and when to sell.

When XRP’s price is above the SuperTrend line, it signals a bullish momentum. For instance, around late November 2024, the price broke above the Supertrend line, marking the start of a major bullish phase that propelled XRP from around $0.50 to a peak near $3.38 by mid-January.

With the SuperTrend line below XRP’s price, dynamics could favour a larger-than-expected breakout aiming for highs above $3.00.

The Moving Average Convergence Divergence (MACD) indicator shows a clear uptrend above the center line. The MACD line (0.0557) above the signal line (0.0318) signals a robust bullish momentum.

Similarly, the expanding green histograms confirm this short-term bullish outlook, corroborated by the Relative Strength Index (RSI) at 61.77. The RSI indicator shows that XRP is neither overbought nor oversold, leaving room for more bullish wiggle.

Declining Open Interest may hamper XRP’s upward momentum

Derivatives data from CoinGlass shows a 2.21% drop in Open Interest (OI) to $6.64 billion and a 27.24% decline in the trading volume to $5.74 billion. OI represents the total number of outstanding derivative contracts that haven’t been settled, like futures or options.

When OI falls, it signals that traders are closing positions, reflecting reduced confidence or interest in XRP’s price direction. Coupled with the drop in trading volume, the uptrend could face significant challenges.