XRP price is booming: increasing demand and bullish momentum!

XRP price is booming: increasing demand and bullish momentum!

The XRP price continues its upward trend and is currently at $2.55, an increase of 4% compared to the previous day. Compared to the previous year, the price has even gained more than 400%. Cryptoquant analyst Boris Vest sees fresh “momentum” in futures trading, indicating increasing interest from traders. Binance Futures data shows increasing open interest, reflecting investor optimism. What is particularly striking is that funding costs are neutral, suggesting a balance between long and short positions.

An increase in short positions, coupled with a decline in funding, has further pushed the XRP price higher. Retail investors are shorting increasingly aggressively, opening the possibility of price absorption. Still, a decline in new XRP addresses in recent weeks suggests that demand may have stalled.

Rising open interest signaled bullish sentiment

Since April 7, XRP has gained 25%, and open interest has increased by 32% during this period. Although positive activity in the spot market contrasts with a neutral futures funding rate, analysts continue to rate XRP as having potential price appreciation. The short-term movements in the XRP market are influenced by the overall recovery of the crypto market. For example, between April 21 and 23, open interest increased from $3.14 billion to $4.13 billion.

The increase in futures open interest coupled with the price increase indicates bullish sentiment. However, despite this optimism, there is also data showing that the XRP futures market is betting against a price increase. Cumulative volume in the spot market shows increasing buying pressure as buys outpace sells.

Long-term price forecasts

Long-term forecasts, as published by Sistine Research, see XRP between $33 and $50 based on a symmetrical triangle. An optimistic target could even cause the price to rise to $77-100. However, the current XRP price of $2.23 reflects a market cap of $131 billion. A rise to $33 would push the market cap to about $2 trillion.

On the lower time level, XRP is showing an inverse head and shoulders pattern that could potentially test the resistance area between $2.50 and $2.67. Interestingly, the Relative Strength Index (RSI) is approaching overbought territory, suggesting that a short price calming could be imminent.

The combination of all these factors gives hope for an exciting development in the XRP market. For the coming weeks, it remains to be seen how the market dynamics will develop and whether XRP can reach the forecast heights. While both bullish and bearish trends are emerging, market psychology could be crucial for the future.