Cryptoinsightuk, a prominent analyst on X (formerly known as Twitter), updated his 27.5k followers on his thoughts on XRP’s short-term price action, which is pointing to a potential rally after a period of consolidation.
The open interest trends, a potential short squeeze, and significant resistance levels at $0.63 and $0.6537 are a few of the important variables that the analyst draws attention to.
But, as the XRP price approaches the lower bound of its present range, investors are watching for a breakout, and if the bulls keep up their momentum, it might result in additional upside.
Key Levels to Watch for XRP
The Cryptoinsightuk XRP chart shows its price hovering around the $0.6291 level, just shy of the first key resistance at $0.63. However, the XRP’s price has already rejected the $0.6537 level (a 78.6% Fibonacci retracement), suggesting that more buying force may be required to get through.
Moreover, the price action has formed a double-bottom pattern near $0.6130, signaling a potential bullish reversal.
Image Source: X/Cryptoinsightsuk
The spot volume on the XRP chart also shows an increase during upward price movements, and this may need to continue if XRP’s price is to push through resistance levels. The next target for bulls, according to Cryptoinsightuk, would be $0.6537, where the price could face a stronger challenge.
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Show more +Show less – Open Interest and Potential Short Squeeze
The open interest (OI) metric is another key indicator that Cryptoinsightuk is monitoring. A notable increase in OI, followed by a slight pullback, suggests some profit-taking or an exit of long positions.
Furthermore, the funding rate is showing a decrease, which could point to short positions entering the market. If XRP continues its upward movement, these shorts could be forced to cover, creating a short-squeeze scenario.
A successful breakout above $0.63 could trigger this squeeze, pushing XRP’s price toward $0.6537 and potentially beyond. The combination of a double bottom, a bullish engulfing candle, and falling funding rates adds weight to this possibility.
Volume is often a reliable indicator of the strength behind a move, and Cryptoinsightuk has pointed out that they are closely watching spot volume during XRP’s price pushes to the upside. The volume needs to remain strong for any sustained rally.
So far, spot volume has been increasing on upward price movements, reaching over 8.065M. If this volume can be maintained or increased, XRP’s chances of breaking through key resistance levels will be significantly higher.
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Monitoring Bitcoin’s Impact
The larger cryptocurrency market, specifically Bitcoin (BTC), is a factor in XRP’s price movement. According to Cryptoinsightuk, BTC is approaching a turning point, and its movement may have an impact on XRP’s price in the short course.
If BTC holds its ground or moves higher, it could provide additional support for XRP’s push-through resistance. However, if BTC faces downward pressure, it could weigh on XRP’s performance.
The platform’s outlook remains neutral as they wait for more price action to develop, particularly at key resistance levels. Whether XRP can break through these levels and continue its upward momentum will depend on several factors, including volume, open interest, and market sentiment.
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