- XRP showed a strong potential to break $ 2.50, supported by resilient price action and support levels
- Bullish sentiment grew on the back of a 72.28% long position ratio and strong derivatives activities
XRP Large recovered to the price diagrams after his recent fight with volatility, with the interest of the Altcoin win. At the time of the press, XRP traded at $ 2.45, after an increase of 2.14% in the last 24 hours.
That is why the question – will XRP be able to break the resistance level of $ 2.50 and activate a rally? With important levels in the game, especially in view of the formation of a bullish pattern, there is a growing expectation of further upward potential.
Can Xrp continue its upward trend?
At the time of writing, XRP was an upside -down head and shoulder pattern – a classic signal from Bullish Momentum. The pattern consists of three important points – the left shoulder, the head and the right shoulder. The head was formed at the level of $ 1.99, while the right shoulder took place near $ 2.20.
The neckline, which plays a crucial role in attaching this pattern, was $ 2.45. A break above this neckline could open the door for a movement to $ 2.60 and possibly higher. If the price runs through $ 2.50, the rally can continue to grow, with potential resistance near $ 3.00.
Source: TradingView
What does the long/short ratio say about the future of XRP?
The long/short ratio positions on Binance Futures granted another important insight into market sentiment. At the time of the press, a remarkable 72.28% of traders held long positions, indicating a strong bullish sentiment. What this means is that a majority of traders believe that the price of XRP will continue to rise.
In fact, only 27.72% of traders are gambling in the short term decline.
This ratio is a sign of growing trust in the potential of XRP to break through the resistance levels. That is why Bullish sentiment can continue to feed the positive prospects for its price.
Derivativation data analysis – what does the market tell us?
The Derivatenmarkt offered a different indication of the growth potential of the active. The volume of the Altcoin rose by 60.98%, with the same climb to $ 4.52 billion – while the open interest figures of $ 3.97 billion flashed.
This increase in trading activity hinted with a greater interest in XRP – a sign of trust from traders.
Moreover, the option volume increased with an amazing 167.91%, which further supports the idea that market participants speculate about the price increase. These statistics revealed that the Derivatenmarkt actively supports the Bullish outlook of XRP.
Source: Coinglass
Based on the technical analysis, long/short ratio and derivative data, it seems likely that XRP will break the resistance of $ 2.50. The prevailing market conditions, including growing interest and positive sentiment, suggested that a rally can be responsible in the short term.