Ripple’s XRP has surged to $1.11, emerging as the top-performing cryptocurrency among the top 20 by market capitalization, with a 50% weekly gain. On-chain metrics and technical patterns suggest the remittance token could extend its uptrend toward $1.96, fueled by unwavering investor optimism.
Bullish Momentum Evident in XRP’s On-Chain Data
Exchange Reserves Hit Four-Month Low
- Over 250 million XRP were withdrawn from Upbit, Korea’s largest XRP exchange, reducing its reserves to 6.3 billion XRP—a four-month low.
- Binance’s XRP reserves also declined after peaking on November 12.
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Why It Matters: Declining exchange reserves signal heightened buying pressure, often driving price rallies.
Futures Open Interest Reaches Record High
- XRP’s open interest (OI) in derivatives markets hit $1.98 billion on Sunday, settling at $1.84 billion by Wednesday.
- OI reflects market activity: Rising OI indicates new money entering the market, reinforcing bullish trends.
Caution Ahead: Leverage Risks
- The Estimated Leverage Ratio (ELR) spiked to 0.17—the highest since January—suggesting traders are taking aggressive positions.
- Historical trend: ELR peaks often precede sharp corrections.
| Metric | Value | Implication |
|---|---|---|
| Exchange Reserve | 6.3B XRP (Upbit) | Reduced supply = Bullish |
| Open Interest | $1.84B | Strong futures demand |
| ELR | 0.17 | High leverage risk |
Technical Analysis: Rounded Bottom Pattern Hints at $1.96 Target
- XRP’s 100% two-week rally positions it to validate a rounded bottom pattern on weekly charts.
- Key levels:
- Breakout: Sustained move above $1.35 (3-year resistance) could propel XRP to $1.96.
- Support: A close below $0.74 invalidates the bullish outlook, potentially triggering a drop to $0.38.
Indicators:
– RSI: Overbought (risk of correction).
– Awesome Oscillator (AO): Green bars signal bullish momentum.
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FAQs: Ripple and XRP Explained
1. What is Ripple’s role in cross-border payments?
Ripple Labs leverages blockchain via RippleNet, enabling instant, low-cost international transfers for financial institutions.
2. How does XRP function?
As the native token of XRPLedger, XRP facilitates trustless transactions, eliminating intermediaries in global payments.
3. What makes XRPLedger unique?
- Decentralized ledger with anti-spam protocols.
- Maintained by the global XRP community (no central authority).
4. Why is XRP’s interledger protocol significant?
It connects disparate banking ledgers, enabling seamless interoperability without centralized control.
Disclaimer: This content contains forward-looking statements subject to risks. Cryptocurrency investments are volatile; conduct independent research before deciding. The author holds no positions in mentioned assets.
Pro Tip: Monitor exchange reserves and leverage ratios to gauge market sentiment shifts.
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