MEXCXRP Price Is Up — So Why Is Open Interest Still Falling?
Highlights
- XRP price demonstrates bullishness among other altcoins, almost touches $0.52.
- Loyal XRP holders eye the next bull market to turn their bags into fortunes.
- Despite the uptick in price falling open interest paints a gloomy picture in the short-term.
XRP price suffered a huge 30% plunge from its Q4 high of $0.7, but it seems to be turning the corner. Investors were nervous when XRP fell below $0.5, a crucial support level. It looked like it could crash any moment bringing lower levels such as $0.38 within reach.
Now that XRP has bounced back above $0.5, it has a chance to recover and aim for $1 over the remaining weeks in February.
XRP Price Rally Imminent
An 11% bump in the 24-hour trading volume, according to CoinMarketCap data, signals rising interest among traders and speculators. The bullish outlook on Thursday mirrors a 2.38% increase in the market cap to $28 billion.
XRP has studied its position in the market since Ripple bagged a partial win against the Securities and Exchange Commission (SEC) in July, becoming the sixth-largest crypto behind Solana (SOL).
The resilience XRP exhibited during the long court battle underscores its potential to go through rough patches and still emerge stronger.
Read also: Cryptocurrency Price Forecast: How Bitcoin, Ethereum, Solana, and Other Top Coins Will Perform in 2024
For most investors, 2024 is an exciting year, with a lot of weight on the upcoming Bitcoin halving. During this event, miner rewards are halved, a situation that shrinks supply.
Bitcoin price has often rallied for months following this event, lifting altcoins with it. Although XRP missed out on the previous bull run due to the aftermath of the lawsuit (many exchanges had delisted it citing regulations), investors expect the token to make up for missed opportunities.
The SEC’s lawsuit against Ripple is expected to end in 2024. If Ripple wins, XRP could soar like it did in July when it reached $0.93. But if Ripple loses, XRP could crash even in a bullish market. That’s why investors need to be careful and manage their risks.
According to the Money Flow Index (MFI), positive volumes could help keep XRP buoyant above $0.5 in case resistance at $0.52 does not budge.
Keep in mind, that XRP is still ranging with support at $0.5 and resistance at $0.54, coinciding with the 200-day Exponential Moving Average (EMA) (the purple line on the chart). A break above this range high is needed to free to higher levels.
The Super Trend indicator’s position above the price is a signal that investors should temper expectations and be ready to act if the tables turn.
Beyond the current technical structure, XRP futures are facing a persistent open interest drop, suggesting low expectations of further price increases. Coinglass data shows the open interest sliding to $530 million from $652 million in November and $928 million in July.
Some of the levels to watch in the short term are the support at $0.52 and the subsequent barriers at $0.52 and $0.54. Despite the move above $0.5, XRP is not out of the woods and might still explore areas towards $0.38. On the flip side, a sustained break above $0.54 and the trend line resistance as shown on the chart could signal the uptick to $1 and beyond.
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