As a result of a 75% increase in its futures open interest, Ripple's XRP has gained almost 20%.
Since many call options are clustered near the $0.72 level, it might be defended by options traders.
If XRP is able to overcome the resistance at the neckline of an inverted head and shoulders pattern, it might see a roughly 50% rise.
On Tuesday, Ripple's XRP token defied the drop saw in Ethereum and Bitcoin by rallying over 20% as investors flocked to the remittance-based asset. If XRP can close firmly above the inverted head and shoulders pattern's neckline barrier, it might see a 50% surge on the technical side.
XRP open interest skyrockets as price increases 20%
Within the last day, XRP's gains have surpassed those of any other cryptocurrency in the top 10 by market cap, second only to Dogecoin. In contrast to the struggles of Bitcoin, Ethereum, and Solana on Tuesday, XRP surged about 20%, indicating a resurgence of investor interest.
A 75% increase from $681 million on November 5 to over $1.2 billion on November 12 shows that investors are optimistic about XRP's prospects.
The sum of all derivatives market contracts that are still open is called open interest (OI). An increase in both OI and prices suggests that investors are adding more money to prop up the price increase.
Similarly, the Deribit exchange's XRP options market is showing signs of a positive trend. Amberdata reports that as of the 29th of November, there is a concentration of 5.6 million call contracts with a strike price of $0.72.
The right to purchase an asset at a certain price within a specified period is granted to investors via call options, which are contracts. If you're a trader and you purchase call options with a $0.72 strike price, that means you think prices will go up more than that before November 29. Because of this, the large number of call traders have an incentive to support current level of prices.
If XRP (Ripple) breaks through critical resistance, its price can increase by 50%.
Following a day of 21.38 million XRP liquidations, Ripple's coin is trading close to $0.7300. According to statistics from Coinglass, there were $14.37 million and $7.01 million in liquidated long and short positions, respectively.
After XRP tested the neckline barrier of an inverted head and shoulders pattern and broke above the 100-day Simple Moving Average (SMA), it is now displaying signals of a major breakout on the weekly chart.
At $0.7440, you may find the neckline resistance, which also serves as its annual high resistance. A three-year high of $1.100, last reached in November 2021, might be within reach if XRP manages to maintain a protracted breakthrough above this level. A 50% rally would be possible.
The remittance-based coin has a 50% chance of completing its 50% rise if it can break through the $0.9380 and $0.8547 important resistance levels.
Bullish momentum is building as both the RSI and the Awesome Oscillator are above neutral levels.
If the daily candlestick closes below $0.4893, the bullish thesis will be rendered invalid.
