TLDR
- XRP has rallied 9% over three consecutive days following Monday’s major correction
- Open Interest on XRP surged 5.63%, reaching $3.53 billion, indicating growing leverage
- Derivatives volume increased 63% and options volume 81% in 24 hours
- Price currently trades below the 100-hour SMA with resistance at $2.64
- White House Crypto Summit participation by Ripple CEO Brad Garlinghouse is influencing market sentiment
XRP has shown remarkable price recovery in recent days after experiencing its largest daily correction since the 2022 Terra crash. The cryptocurrency has bounced back with three consecutive days of price increases, gaining 9% and currently trading at $2.533.
Market data suggests this recovery is largely driven by growing interest in XRP derivatives. Open Interest (OI), which measures unsettled derivative contracts, jumped 5.63% on Thursday according to CryptoQuant analysis.
This surge in Open Interest has continued, with data from Coinglass confirming an increase from $3.29 billion to $3.53 billion today. The appetite for leveraged positions appears to be accelerating rapidly.
Trading volumes tell a similar story. Derivatives volume has increased by 63% while options volume has surged by 81% in just 24 hours. These indicators point to traders actively positioning themselves for short-term price movements.
The price began its recovery near the $2.20 support zone. This bounce enabled XRP to push above several key price levels including $2.40 and $2.50 before meeting resistance around $2.64.
Selling pressure emerged as XRP approached the $2.64 resistance level. This forced a correction that broke below a bullish trend line at $2.55 on hourly charts, creating some short-term weakness.
Currently, XRP trades below both the $2.55 level and the 100-hour Simple Moving Average. First major resistance sits at $2.535, with the next target at $2.64 if buyers can overcome current levels.
On the support side, key levels exist at $2.425 and $2.375. The latter coincides with the 61.8% Fibonacci retracement level of the recent upward move from $2.211 to $2.639.
Derivatives Markett
Derivative markets show a strong bullish sentiment with leveraged long positions reaching $150 million compared to $115 million in short positions. This 20% gap indicates trader optimism but also creates liquidation risks if the market moves against these positions.
Maarten Regterschot, a verified CryptoQuant analyst, has suggested that this leverage-driven pump may present a shorting opportunity. He cautioned that a drift in momentum could push prices lower, though he warned that “XRP’s price actions can be wild.”
The upcoming White House Crypto Summit has captured market attention and appears to be influencing trading behavior. This high-profile event will feature discussions on regulatory frameworks and a proposed U.S. crypto reserve.
Ripple CEO Brad Garlinghouse has confirmed his participation in the summit. He will join other industry leaders including Coinbase CEO Brian Armstrong and MicroStrategy’s Michael Saylor at the event.
XRP has outperformed major cryptocurrencies ahead of the summit. While Bitcoin dropped 4%, XRP gained 19%, showing the market’s positive reaction to Ripple’s involvement in these regulatory discussions.
Technical indicators present a mixed picture for XRP. The Parabolic SAR dots remain below price action, confirming the uptrend, while the MACD histogram shows expanding green bars and the MACD line has crossed above the signal line.
XRP experienced an earlier price dip today along with other cryptocurrencies after Donald Trump’s executive order failed to meet expected market enthusiasm. However, the asset has regained momentum and trades at $2.533 at press time, up 3% in the past 8 hours.
