Ripple's (XRP) price displays resilience amid market volatility. A 125% surge in options contracts indicates investor confidence in a potential uptrend. Dive into technical data analysis and derivatives trends pointing towards XRP price recovery to $2.50.
The price of Ripple (XRP) had a turbulent week, experiencing a 17% drop over the past three days. However, despite a 6% decline in the overall crypto market on Sunday, XRP managed to stay above the $2 threshold.
This resilience is partly explained by bullish signals from the derivatives market. Coinglass analysts noted a significant 125.93% increase in XRP options contracts volume, with a 149.56% rise in open interest. This increased speculative activity suggests that investors are betting on a price rebound in the days to come.
However, the BTC correction does not seem to be over, and Ripple’s token could break this support today. With a trendline at $1.96, XRP will need to bounce back between $1.96 and $2 in case of a drop during the day.
However, the price evolution of XRP is still dependent on regulatory developments in the United States. Traders will closely monitor the confirmation process by the U.S. Congress of Paul Atkins’ appointment as the SEC Chairman. If this candidate, who is more crypto-friendly, is approved, it could positively influence market sentiment.
Conversely, a rejection by Congress could fuel investor fears and lead them to unwind their XRP positions, causing the price to drop below $2.
Despite these regulatory uncertainties, technical signals and derivative market data indicate a positive trend for Ripple price in the days ahead.
Analysis of the charts shows that XRP has formed a bearish pennant on the daily timeframe, but the Keltner band is tightening, indicating a potential bullish breakout. Crossing the midline at $2.30 could pave the way for a test of the resistance at $2.58, setting a price target of $2.50 for next week.
Furthermore, the long/short ratio of traders on Binance shows a slight bullish bias, while the long/short accounts ratio stands at 3.1, reinforcing investor optimism.
The RSI also displays a bullish divergence in 3H. The 50-day moving average at $2.32 must be surpassed and turned into support to consider this bullish rebound.
In summary, the price of Ripple (XRP) seems well-positioned to initiate a rebound this week. Although the regulatory landscape remains uncertain, technical data and signals from derivative markets suggest a price recovery towards $2.50.
XRP traders should, however, remain vigilant about the volume evolution and chart patterns, which could determine the strength of this potential rise. Overall, the indicators are favourable for a renewed momentum for XRP in the days to come.
Here is a detailed guide on buying XRP on the Weex platform before its potential 20% rebound:
Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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