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With a nearly 191% increase in volume, XRP has pulled off one of the most impressive recoveries on the cryptocurrency market this year. As we can see, XRP took a swing and reached the $3.60 zone before encountering short-term profit-taking following months of consolidation between $2.30 and $2.80. When the pullback reached support near the 26 EMA (~$3.03) buyers immediately entered the market again, pushing the price back above $3.30.
XRP trending
The 200 EMA and 50 EMA are both trending upward and well below the current price, indicating a structurally strong uptrend, so the technical setup is still bullish. There may be more upside without going overboard, as the Relative Strength Index (RSI) has cooled from overbought conditions while remaining above the midline. Data from the derivatives market supports the bullish thesis.
Strong market values
The fact that XRP is trading volume surged by +194.24% to $18.16 billion over the last day and that open interest increased by +20.41% to $8.79 billion indicates that new money is entering the market. Of particular note was the +1,355% spike in options volume, which indicated aggressive positioning by traders anticipating more volatility.
Whales are significantly skewed toward the long side, as evidenced by the top trader long/short ratios on Binance (2.47 by accounts and 2.75 by positions). There is some opposition to the $5 route, though. XRP would need to maintain exceptionally strong buying momentum beyond the psychological $4.00 mark, which is a significant obstacle.
A blow-off top is more likely if speculative interest wanes, even though the volume spike is encouraging. To prevent a more severe retracement, it will be essential to keep support above $3.00 — ideally $3.20 — in the near future. XRP has the technical basis to challenge $4.50 in the medium term and potentially $5.00 if the current momentum supported by consistent derivatives inflows and robust spot buying continues. Any decline below $2.90, however, might call into question the rally and render the bullish outlook invalid.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team