XRP Price Bounces 4% as $184M Buy Orders Flood Binance – Is a Rebound to $1.42 likely?

Ripple (XRP) price traded at $1.34 at the time of writing, marking a 4.6% gain from its intraday low of $1.284. The bounce coincides with a surge in buying pressure as traders bet on a recovery.

Meanwhile, analysts suggest that a sustained uptrend could push XRP price towards $1.42, with this bullish outlook coinciding with an increased number of long positions on the altcoin.

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XRP Buy Orders Surge After Dip to Multi-Week Lows

Analyst Darkfost notes that the recent crypto market selloff caused by sticky CPI and PPI inflation numbers created an opportunity for leverage traders to purchase XRP below $1.30.

Within one hour of XRP dropping below $1.30, more than $73 million in buy volumes flowed into Binance. After a few hours, these buy volumes had surged to more than $184 million as traders on the exchange opened new positions.

These positions have fuelled a recovery for XRP price from the multi-week low of $1.284.

However, an increase in short-term capital inflows could also increase XRP’s price volatility in the near term if the dip buyers decide to start booking profits after the rebound.

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XRP Open Interest Falls Despite Rising Long Positions

Data from CoinGlass shows that despite the rebound in XRP price, the open interest has dropped significantly to its lowest since September 18.

The OI stood at $2.84 billion at the time of writing, marking a notable drop from $3.54 billion on October 7.

However, amid this falling open interest, long positions on XRP have risen as Ripple increases its footprint in institutional finance.

The Hyperliquid whale tracker shows that three out of the four whale positions opened on XRP on october 15 are long positions with a value of $7.4 million.

The weighted funding rate has also increased to a one-week high of 0.0101%. The long/short ratio has also risen to 1.05 as the number of long accounts exceeds that of short accounts.

Can XRP Price Rebound to $1.42?

Analyst Ali Martinez on X forecasts that the value of XRP could rise to $1.42, with this being the mid-line of a parallel channel on the one-hour chart.

However, zooming out on the one-day chart shows the formation of a descending triangle pattern that usually warns of a potential bearish reversal if the price moves below the support level.

For XRP, this support level lies at $1.28. Falling below this support could cause a downtrend to the 123.6% Fib of $1.139.

The RSI has a reading of 38, as the momentum favors bears. The price also remains below the 200-day EMA as the trend weakens.

A strong rebound towards $1.42 depends on XRP retaking the 200-day EMA and closing above the resistance of the falling triangle pattern.