XRP may rise to $2 as on-chain measures show optimistic enthusiasm
Ripple's XRP exchange reserve drop and open interest rise indicate investor optimism.
XRP's projected leverage ratio indicates significant leverage risk, and peaks frequently cause a correction.
XRP might reach $1.96 if the rounded bottom pattern holds. On Wednesday, Ripple's XRP remains the highest-performing cryptocurrency in the top 20 by market value, with a 50% weekly increase to $1.11. As strong sentiment persists, on-chain statistics and technical patterns suggest the remittance-based coin might surge to $1.96.
XRP's on-chain data shows massive bullish momentum. The biggest XRP reserve, Korean exchange Upbit, had approximately 250 million XRP token withdrawals in the previous week, according to CryptoQuant. The data below shows Upbit's XRP reserve at 6.3 billion XRP, a four-month low due to withdrawals. Binance's XRP reserve started falling after peaking on November 12.
A decline in an asset's exchange reserve suggests increased purchasing pressure, which may raise prices.
According to Coinglass data, XRP's futures open interest reached an all-time high of $1.98 billion on Sunday before settling at $1.84 billion in the early Asian session on Wednesday, indicating optimistic optimism.
Derivatives market open interest is the number of contracts outstanding.
XRP's estimated leverage ratio (ELR) suggests investors anticipate the rally to continue. The ratio rose to 0.17 on Saturday, its highest level since January.
Technical analysis: XRP may surge again if rounded bottom pattern holds.
XRP soars over $1.10 following $9.62 million in futures liquidations. Long and short liquidations were $6.23 million and $3.38 million.
After a 100% spike in two weeks, XRP is nearing a rounded bottom on the weekly chart.
XRP might climb to $1.96 if it maintains a prolonged advance over its three-year barrier of $1.35.
XRP will reach $2 for the first time in six years if it breaks this obstacle.
