XRP Price Action Stalls While Derivatives Market Flashes Key Bullish Signal
Despite recent price pressure, a significant drop in XRP open interest suggests a potential bullish recovery is imminent once investor interest returns.Summary
The XRP price has stalled after an early January surge, currently trading around $1.88 amid broader market downturns. However, the derivatives market is showing a key bullish signal: XRP's open interest on Binance has dropped below $500 million, persisting since the October liquidation event. Analyst Darkfost noted that this deleveraging phase, where open interest falls below its semi-annual average, historically precedes a bullish recovery once investor interest returns to the derivatives market. Supporting this outlook, on-chain metrics show increased accumulation by long-term holders (declining Liveliness), the RSI recovering from oversold levels, and XRP trading within a descending wedge pattern, often preceding a breakout. Conversely, rising XRP reserves on major exchanges like Binance and Upbit suggest potential selling pressure remains a challenge.
(Source：BeInCrypto)