XRP Surges 25% as Open Interest Rises 32%

XRP, the cryptocurrency, has experienced a significant surge in its price and open interest over the past few weeks. Since April 7, XRP has gained 25%, and its open interest has risen by 32%. This increase in open interest, from $3.14 billion to $4.13 billion between April 21 and 23, indicates a renewed interest from derivatives traders. The rise in futures open interest alongside the price increase suggests a bullish sentiment among traders. However, data from Velo presents a different perspective. The negative aggregated premium on open interest indicates that the XRP futures market is bidding against an XRP price rise. The funding rate remaining near 0 implies a neutral stance between bulls and bears, highlighting a tug-of-war between traders.

The aggregated spot tape cumulative volume delta turned positive in April, indicating increasing buying pressure in the spot market. This measure shows the net difference between aggressive buy and sell trades across various exchanges, with market buy trades surpassing sell trades. Despite the rising futures interest, the data suggests that XRP’s price remains caught in a tug-of-war between bullish spot market activity and bearish perpetual futures.

Following XRP’s price pump, Sistine Research, a crypto investment community, posted a bold prediction for XRP, forecasting a long-term target between $33 and $50. This prediction is based on a higher time frame symmetrical triangle that mirrors 2017’s 2,600% rally. The platform suggested that an optimistic target may drive prices as high as $77-$100. For context, XRP is currently valued at $2.23 with a market cap of $131 billion. A $33 target increases the market cap to approximately $2 trillion, which is more than Bitcoin’s current market cap. From a lower-time frame perspective, XRP shows an inverse head-and-shoulders pattern, which could potentially test the resistance range between $2.50 and $2.67. The resistance range also coincides with the Fibonacci extension levels drawn from the neckline's base to the head's lowest point. Although the relative strength index (RSI) is nearing overbought territory, suggesting a potential pause in price movement at the current range.