XRP is trading at $0.61, having gained nearly 41% from $0.42 in the last week.
Optimism was high as traders bet that gold prices would rise further, with open interest rising 70%.
Network participation has surged to April highs, sending a buy signal, but it’s not ideal.
The price of Ripple (XRP) has had one of the most significant gains among the top altcoins, hitting a three-month high.
Investors continue to pour money into altcoins, supporting this result and further price gains.
Ripple Investors See Growth
XRP price has benefited from broader market cues and bullish investor sentiment. Ripple’s open interest is evidence of this. Market optimism has surged as open interest has risen 70%. The increase has seen open interest jump from $443 million to $753 million, reflecting increased trading activity and interest in cryptocurrencies.
Traders are betting that XRP prices will continue to rise, driving a surge in open interest. The sharp increase indicates growing confidence among market participants that XRP will rise further.
XRP open interest. Source: Coinglass
In addition, network participation has increased significantly, with the number of investors trading on the network increasing from an average of 27,000 per day to 43,700 at its peak this week.
This is the highest value recorded by XRP holders in the past three months. Rising prices have sparked investor interest, leading to active addresses, which is generally considered a buy signal.
XRP active addresses. Source: Santiment
However, given the rally, bullish sentiment could quickly saturate. A correction and market cooling could ensue, making buying a bad decision.
XRP Price Prediction: Uncertainty Emerges
Where XRP price is headed from this point is uncertain as bullish sentiment appears to have peaked, yet demand remains high. This demand has propelled the altcoin to achieve the bullish price objectives predicted by the ascending triangle in April.
A rally following the breakout would have taken the price to $0.61; however, this pattern failed. Nonetheless, a 40% gain over the past week has pushed the altcoin’s trading price back to $0.61.
XRP price analysis. Source: TradingView
Therefore, the altcoin not only achieved its target but also turned the 38.2% Fibonacci retracement level into support. This will help XRP price to sustain the recent up move. However, if the support is lost, the bullish thesis will be invalidated.
