XRP Surpasses $2.55 Resistance: Can it Reach $2.8 Next?

XRP Surpasses $2.55 Resistance: Can it Reach $2.8 Next?

XRP is currently on the rise after overcoming a resistance level set at $2.55, with rising Open Interest and Taker Buy Volume indicating a bullish sentiment in the short term. However, traders must proceed with caution as it is yet to reclaim previous resistance levels at $2.64 and $2.77.

Key Takeaways

XRP has broken past local resistance at $2.55, boosted by rising Open Interest and Taker Buy Volume that suggests bullish sentiment.
The next key targets for XRP are $3.1 and $3.4, but it must first reclaim resistance levels at $2.64 and $2.77.
Over a four-day period, XRP has experienced an 11.4% rally, largely driven by whale accumulation.
Bitcoin's recent surge past $112k could positively influence sentiment in the crypto market.

XRP 1-day Chart

As highlighted in a recent report by AMBCrypto, the resistance zone between $2.5 and $2.77 is crucial for bullish activity. At present, the local swing high of $2.64 is under scrutiny. If it is breached, the potential for a rally beyond $2.77 increases significantly. The price target for XRP this week is anticipated to be around $3, aided by Bitcoin's upward movement.

XRP Open Interest Reaches May Lows

XRP Open Interest

According to analyst PelinayPA from CryptoQuant Insights, the trends in Open Interest (OI) could catalyze an XRP rally. Currently, the OI sits just below $550 million, at levels similar to those seen in May. The crypto market experienced a crash on October 10th that significantly impacted OI across the board. This event has accelerated a price reset and cleared out the derivatives market’s structure.

The analysts note that the present conditions resemble patterns typically seen at the onset of a new trending phase. A recovery in OI, accompanied by strong demand in the spot market, could set XRP on a trajectory toward the $3 supply zone. If sustained demand and momentum continue, prices might even reach $4.5 in the future.

XRP Taker Buy Sell Ratio

The Taker Buy/Sell Ratio has recently favored buyers, an occurrence that signals a potential uptrend. Since August, price corrections into the demand zone between $2.8 and $3 have been met with increased taker buy orders, indicating bullish expectations from this support area.

As XRP continues to surge past the $2.55 local resistance, the rise in taker buy volume is viewed as a positive development. Data from CryptoQuant shows that Open Interest has risen from $550 million to $590 million in just 24 hours. However, XRP bulls should remain cautious; while these developments are encouraging, significant hurdles still exist overhead. The supply zone between $2.8 and $3 will play a critical role in determining the forthcoming direction of XRP’s price movements.