contributor
Posted:
- Should it maintain its current momentum after breaking out of its descending channel, XRP can reach $0.74.
- A rise in active addresses and a decline in supply underpin the surge, indicating strong trader interest.
XRP is on the cusp of reversing its month-long losses, with gains of 5.26% weekly and 4.59% daily, setting the stage for a rally.
The potential rally could stem from a bounce off the mid-range line of the descending channel, a critical point of accumulated momentum.
XRP signals the first rally sign
XRP has been confined within a descending channel since November 2023, as observed in the daily timeframe. Currently, it shows signs of a breakout, indicating a shift in price action.
Typically, a descending channel is considered a bullish pattern. It is characterized by price fluctuations between two main zones while trending downward, ultimately leading to a breakout.
XRP’s current pattern aligns well with this expectation.
If the mid-range support (marked as a black line) experiences intensified buying pressure, it could overcome the channel’s upper resistance line. Thus, the price could go to a near-term target of $0.74.
Source: Trading View
An in-depth analysis by AMBCrypto suggests that XRP is prepared for a breakout.
Growing interest in XRP
Recent data from CryptoQuant highlighted a resurgence in interest for XRP. Following a sharp decline in active addresses on the 9th of September, there was a significant uptick to 8.9k active addresses.
This increase in active addresses has helped propel prices upward, offsetting major losses experienced between the 5th and 6th of September.
Source: CryptoQuant
Moreover, both the exchange reserve and the price of XRP have been rising concurrently.
This pattern typically indicates strong demand surpassing the available supply, despite increased deposits on exchanges for potential trading.
These indicators collectively suggest strong buyer interest, positioning XRP favorably for a potential rise to the aforementioned target.
Open Interest pushes surge potential
Open Interest, representing the total number of unsettled derivative contracts like Futures or Options, signals growing market momentum and accumulation by traders when it increases.
At press time, XRP’s Open Interest, according to Coinglass, surged by 5.7% in the last 24 hours, reaching $625.48 million despite previous declines.
Read XRP’s Price Prediction 2024–2025
This uptrend suggested enhanced buying activity that could support a sustained rally toward the critical price level of $0.74.
Source: Coinglass
Should this upward trend in Open Interest or other key datasets falter, it could lead XRP to retract to the mid-range or even the lower boundary of its descending channel.
