XRP Exhibiting Unusual On-Chain Behavior, How Will This Affect Price?
21 Junho 2024 - 2:00PM
NEWSBTC
Data shows XRP is currently exhibiting an interesting on-chain
behavior amidst a broader market uncertainty. This unusual behavior
was highlighted by CryptoQuant, a crypto on-chain analytics
company. The peculiar behavior is noteworthy because it is
associated with a growing open interest in XRP in comparison to
other cryptocurrencies, suggesting XRP is primed for a major price
move. XRP Open Interest Surges According to CryptoQuant data
initially noted by an analyst associated with the analytics
platform, recent news involving the SEC and Ripple, XRP’s parent
company, has seen the open interest for XRP resuming an uptrend.
Related Reading: Bitcoin Crash Below $66,000 Stuns Market, Why A
Drop To $54,930 Is Possible As per the CryptoQuant chart below, the
open interest, which has generally been in an uptrend since April
15, recently took a hit in the first week of June and started to
decline concurrently with a fall in the price of XRP. However, the
open interest has now rebounded and has resumed its uptrend.
Interestingly, this increase is more significant than that of other
cryptocurrencies, considering many crypto prices have struggled in
the past week. The rising open interest also relays the current
sentiment among XRP investors, as it indicates that investors are
opening more positions in anticipation of an increase in the price
of XRP. How Will This Affect Price? Open interest refers to the
total number of outstanding derivative contracts that haven’t been
settled. Climbing open interest often signals more money flowing
into the market. This is evident in the chart above, as increases
in open interest have mostly been registered with a corresponding
increase in the price of XRP. Furthermore, open interest is
considered a leading indicator for many savvy investors. When it
soars, it signals that new money is flowing into the market as
traders open new positions. This increased activity and liquidity
can foreshadow where an asset’s price might be headed next.
Regardless of the direction in which the price heads, one outcome
is nearly guaranteed: more volatility. Related Reading: Dogecoin
Enters Final Stage Of Consolidation, Analyst Predicts 6,150% Rally
To $7.5 At the time of writing, XRP is trading at $0.486 and has
increased by 1.44% in the past seven days. Despite this meager
increase, it’s interesting to note that XRP is currently the only
asset among the top 20 largest cryptocurrencies still in the green
zone in the past week. Adding to the bullish outlook is the strong
trading volume over the past few days. According to data from
Santiment, some traders are still bearish on XRP despite the fact
that it is currently outperforming many other assets. XRP is also
traders shorting to counter the bulls. However, as Santiment noted,
this is a good sign for patient bulls, as the shorting activity can
act as ‘rocket fuel’ for continued price rises when they eventually
become liquidated. Featured image created with Dall.E, chart from
Tradingview.com
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