$XRP 🚨✨✨
🔸Ripple's XRP eyes rally to new all-time high after 40% spike in open interest
🔺XRP open interest surged by 40% in the past 24 hours.
🔺Buying pressure across exchanges and investment products helped XRP to maintain a bullish outlook.
🔺XRP could be on the verge of a massive breakout after testing the resistance of a bullish pennant.
Ripple's XRP trades near $2.40, up 1% on Monday following a 40% surge in its futures open interest. The surge could help the remittance-based token overcome the key resistance of a bullish pennant pattern.
XRP on-chain activity indicates rising bullish momentum after open interest surge
XRP futures open interest witnessed a spike on Monday, rising by over 40% from 1.09 billion XRP to 1.53 billion XRP. Open interest is the total number of unsettled contracts in a derivatives market.
XRP could post a massive rally with a break above bullish pennant resistance
XRP saw $3 million in futures liquidations in the past 24 hours, with long and short liquidated positions accounting for $1.72 million and $1.28 million, respectively, per Coinglass data.
XRP is on the verge of validating a bullish pennant after testing the pattern's upper boundary resistance for the second time in the past three days. If XRP posts a high volume move above this resistance, it could rally to a new all-time high near $4.78.
However, it could encounter key hurdles at its all-time high of $3.55 and near the resistance below the $3.00 psychological level.
If XRP continues seeing a rejection at the upper boundary of the pennant, it could find support at its lower boundary near the 50-day Simple Moving Average (SMA).
The Relative Strength Index (RSI) momentum indicator is above its neutral level, signaling dominant bullish momentum. Meanwhile, the Stochastic Oscillator (Stoch) is slightly in the overbought region, indicating XRP may see a moderate correction.
A daily candlestick close below $1.96 will invalidate the bullish thesis and send XRP toward $1.35.