Ripple Price Forecast: XRP bulls aim for record high breakout amid futures open interest recovery
- XRP remains above $3.00 support, but resistance at $3.40 limits price action.
- XRP futures Open Interest edges higher above $8.5 billion, pointing to increasing speculative demand.
- Steady futures funding rates and volume back XRP’s short-term bullish outlook.
Ripple (XRP) price offers signs of consolidating above support at $3.00 on Monday. Its technical structure leans largely bullish, but profit-taking is dampening the uptrend.
Sentiment is likely cooling in the broader cryptocurrency market following a significant breakout in the prices of Bitcoin (BTC) and Ethereum (ETH) toward the end of last week.
The cross-border remittance token reacted positively to the news that Ripple and the United States (US) Securities and Exchange Commission (SEC) had filed a joint motion to dismiss appeals, paving the way for the resolution of the five-year legal battle. Ripple will pay $50 million in settlement fees out of the $125 million held in escrow.
XRP flaunts a bullish derivatives market
XRP price recovery is happening in tandem with the futures Open Interest (OI). CoinGlass data shows that OI, which refers to the notional value of outstanding futures or options contracts, edged higher and averaged at $8.5 billion on Monday. This represents a 17% increase from $7.05 billion recorded on August 3.
XRP Futures Open Interest data | Source: CoinGlass
A subsequent increase in the futures weighted funding rates to 0.0108% from 0.0004% over the same period suggests that more traders are leveraging long positions in XRP.
XRP Futures Weighted Funding Rates data | Source: CoinGlass
The increase in trading volume to $12.64 billion as OI and funding rates recover points to expanding market activity.
XRP Futures Volume | Source: CoinGlass
Despite the potential profit-taking following last week’s macro-driven breakout, XRP is consolidating above its $3.00 support and the resistance at $3.40. If the bullish trend in the derivatives market holds, growing interest in XRP could propel the price toward the record high of $3.66, reached on July 18.
Technical outlook: XRP consolidates before breakout
XRP price holds between support at $3.00 and resistance at $3.40. The Money Flow Index (MFI), which has recovered slightly above 40, indicates that more money is flowing into XRP.
A breakout could be anticipated if the derivatives market highlighted above continues its recovery as interest in the cross-border money remittance token increases.
XRP/USDT daily chart
The upward-trending moving averages, including the 50-day Exponential Moving Average (EMA) at $2.88, the 100-day EMA at $2.66, and the 200-day EMA at $2.39.
In the event of a significant recovery below the support at $3.00, these levels could serve as tentative support to absorb the selling pressure and prevent XRP from declining toward the $2.00 level.
Ripple FAQs
Ripple is a payments company that specializes in cross-border remittance. The company does this by leveraging blockchain technology. RippleNet is a network used for payments transfer created by Ripple Labs Inc. and is open to financial institutions worldwide. The company also leverages the XRP token.
XRP is the native token of the decentralized blockchain XRPLedger. The token is used by Ripple Labs to facilitate transactions on the XRPLedger, helping financial institutions transfer value in a borderless manner. XRP therefore facilitates trustless and instant payments on the XRPLedger chain, helping financial firms save on the cost of transacting worldwide.
XRPLedger is based on a distributed ledger technology and the blockchain using XRP to power transactions. The ledger is different from other blockchains as it has a built-in inflammatory protocol that helps fight spam and distributed denial-of-service (DDOS) attacks. The XRPL is maintained by a peer-to-peer network known as the global XRP Ledger community.
XRP uses the interledger standard. This is a blockchain protocol that aids payments across different networks. For instance, XRP’s blockchain can connect the ledgers of two or more banks. This effectively removes intermediaries and the need for centralization in the system. XRP acts as the native token of the XRPLedger blockchain engineered by Jed McCaleb, Arthur Britto and David Schwartz.
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