Buying on Ripple [XRP]? This is the current upside “but”

  • XRP has been strongly bullish and could reach $0.3829 or higher.
  • Open interest has steadily increased.
  • A move below $0.3455 will invalidate the forecast.

Ripple (XRP) Has risen over the past week, with occasional declines. At press time, XRP is trading at $0.3688, up 4% with a 100% increase in volume over the past 24 hours.

The high trading volume indicates strong buying pressure that could cause XRP to retest and break many resistance levels in its bullish trend.

The immediate resistance target will be the 50-period Exponential Moving Average (Exponential Moving Average) at $0.3829. But there are more hurdles that the XRP bulls need to clear in order to move higher.

Read Ripple (XRP) Price Prediction 2023-24

Next challenge

Source: XRP / USDT on TradingView

XRP has been trading in a range since mid-November on the daily charts. At the time of publication, the recent rally was strong enough to break the first barrier at $0.3594.

In particular, the RSI has moved up from the oversold area and retested around the mid-50th point mark. It appears that strong buying pressure has followed, allowing XRP to rise from the lower end of the range.

Trading volume has also reached recent highs, which indicates an increase in daily trading volumes, adding to the rally. The sustained momentum could see XRP target or break the next barrier at $0.3807 (previous support) or the 50-period moving average at $0.3829.

Clearing the above hurdles will allow the bulls to focus on other targets at $0.3943, the bearish order block around $0.4200, and finally the 200-period moving average at $0.4345 in a few days/weeks.

But historical RSI trends can complicate matters. A notable RSI encountered rejection four times at the midpoint level of 50. Each rejection led to a price rejection, and a repeat of the same could see XRP drop to the former support at $0.3594 or the current support at $0.3455.

Such a downward movement will invalidate the bullish forecast mentioned above. Therefore, investors should only take long entry positions if the RSI shifts the midpoint to support.

How do Many XRP Can you get 1 dollar?

XRP has seen an uptick in open interest

Source: Coinglass

Open interest refers to the number of open positions for an asset (long and short). In other words, it refers to demand in the derivatives market and to some extent to sentiment about the asset.

In this case, XRP has seen a sharp increase in open interest based on Coinglass data. On the Binance exchange, the volume of open positions increased from about $130 million on December 22 to about $180 million on December 27.

Other exchanges also recorded a modest increase in open interest on XRP over the same period.

Source: Coinglass

This indicates an increase in the demand for XRP in the derivatives market. It also shows that investors were optimistic about the assets. Could improving sentiment and demand push XRP over its immediate hurdles? Only time can tell.

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