XRP Leads Market Gains

Ripple’s XRP is up 3% in the past 24 hours, and currently ranks as the market’s top gainer.

The price of Ripple’s XRP is up 3% in the past 24 hours, making it currently ranks as the market’s top gainer. The token’s rally is accompanied by a surge in derivatives activity, with XRP’s open interest climbing to its highest level in three months.

This spike in open interest could help strengthen XRP’s bullish bias and enable it to extend its upward trend over the short term.

XRP Leads Market Gains With Surging Open Interest

The open interest of XRP, the world’s seventh-largest cryptocurrency, reached $5.38 billion. This represents a 17% surge from the previous day and marks the highest level since December 2022.

The surge in open interest comes as total market capitalization dropped by $14 billion in the last 24 hours, signaling a slowdown in the broader crypto market rally.

An asset’s open interest measures the total number of outstanding derivative contracts, such as futures or options, that have not been settled. It usually increases when an asset’s price trends up as it signals new money flowing into the market.

When open interest rises alongside an asset’s price, it indicates that the ongoing trend might continue. In this case, the spike in both XRP’s price and open interest suggests that bullish positions are increasing, which reinforces the strength of the ongoing rally.

Moreover, technical indicators on the daily chart also indicate a bullish outlook for XRP.

Readings from the MACD indicator show its MACD line (blue) resting significantly above the signal line (orange). The MACD indicator identifies trends and momentum in an asset’s price movement. It helps traders spot potential buy or sell signals through crossovers between the MACD and signal lines.

When the MACD line rests atop the signal line, it indicates bullish momentum, suggesting that the asset’s price may continue to rise. Traders see this crossover as a buy signal. Hence, the setup could potentially drive up XRP’s demand and price.

XRP Bounces Off Key Support

The XRP token is currently trading at $2.55, bouncing off the support formed at $2.50. If this key support floor strengthens, it could propel its price toward $2.71, a high it last reached on March 3.

However, if selloffs resume, this bullish outlook will be invalidated. In that scenario, the token’s price could break below the $2.50 support and fall to $2.29.