XRP Trading Frenzy: Soaring Open Interest Signals Imminent Breakout
According to market experts, XRP’s soaring open interest indicates a spike in speculative activity and suggests a possible price breakout soon. As of Tuesday morning, the coin is trading at about $2.21.
XRP’s open interest has surged to nearly $5 billion (over the weekend), indicating increasing speculative activity as traders take sizable positions in the derivatives market. This spike suggests strong potential momentum, with market participants bracing for a decisive move,
Bitget chief market analyst Ryan Lee
XRP Poised for Breakout as Consolidation Zone Signals Big Move Ahead
The price of XRP is presently within a narrow consolidation zone, which is sometimes a technical indicator of breakouts. The bullish mood is further reinforced by steady spot purchasing pressure. Similar configurations in the past have produced quick rallies in XRP, surprising short sellers and leading to short squeezes. The direction of the next significant move is still up in the air, even if the high level of open interest indicates anticipation.
XRP’s Open Interest Hits Peak, But Is a Crash Coming Next?
Lee cautioned that such large levels of open interest might also increase volatility in the absence of a clear catalyst. If sentiment deteriorates, traders might have to deal with massive liquidations.
Without a clear catalyst, such elevated open interest could exacerbate volatility in either direction. A bullish surge may trigger a short squeeze, while an influx of profit-taking or macro-driven risk-off sentiment could fuel liquidations and downside pressure.
Lee
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