You’re tuned into HODL FM, the crypto publication that’s about to power up your Tuesday like a double-shot espresso.
Today’s agenda has everything to do with XRP. Read on to see how the cryptocurrency is performing.
Spotlight on current XRP price
XRP's price strutted up 5%, hitting the bullish heights of $0.6278 on Sept. 29 as part of a thrilling recovery saga that kicked off on Sept. 6.
Since then, the token has shot up by 10% in the last 30 days—just enough to break above the channel between the two yellow lines on the chart below:
XRP Open Interest
The fuel behind the consistent uptrend even during the market meltdown in September is thanks to a serious boost in open interest.
Open Interest (OI) is a key metric that traders and analysts rely on to gauge market sentiment and forecast potential price movements.
Starting on Sept. 7, XRP’s OI climbed approximately 67%, reaching $932.3 million by Sept. 29, aligning with the upward movement in price.
This marks the highest level of open interest since April 12, 2024, indicating renewed investor engagement and momentum in the market.
It's important to note that whenever prices increase alongside a rise in open interest, it often signals the likelihood of a continuing trend.
This combination suggests strong market participation, reinforcing the potential for sustained price momentum.
Furthermore, September saw XRP wake up from its three-year nap inside a symmetrical triangle.
According to the charts, this breakout has been taking shape since 2020 and if the cryptocurrency manages to keep its rally going, we could see it inch toward that elusive $2.0 mark.
Ripple (XRP) Relative Strength Index (RSI)
The anticipation is again cemented by technical signals pointing to a strong bullish trend, let’s look at the Relative Strength Index or RSI.
One of the indicators showing notable bullish activity is the Relative Strength Index (RSI), which has apparently flashed a rare bullish signal on the monthly chart. It’s rare because the last time we saw this signal was about seven years ago.
#XRP - RSI is peeking above the 7-year trendline!
— JD 🇵🇭 (@jaydee_757) September 28, 2024
If we close above next week, this will be the most BULLISH thing to happen in the last 7 years!
Those who got REKT will DENY!🤣
Are we going to reject or confirm breakout?!
Retweet/Like, and I'll post update next week on X! pic.twitter.com/S5FK41rigc
XRP Fibonacci Retracement
XRP’s price has been trying to break above the 78.6% Fibonacci Retracement line since early March, repeatedly running into strong resistance.
Despite multiple efforts, the altcoin has been unable to sustain a breakout, leaving it stuck within a bearish channel.
However, there is a significant change in market sentiment in recent days which indicates long-term holders now have renewed confidence.
There is huge potential for the price of XRP to increase and boost profits for key investors, which will possibly bring to an end XRP’s prolonged struggle.
The MVRV (Market Value to Realized Value) Long/Short Difference indicator for XRP is pointing at 3.1%, which suggests the long-term holders (LTHs) are in profit.
This is a positive sign for one good reason:
Long-term holders tend to hold onto their tokens for longer periods, as they target higher profits before deciding to sell.
With fewer short-term holders in control, there's less risk of immediate selling pressure, giving XRP a stronger chance to continue its upward momentum.
More: XRP Rises from the Ashes and Becomes 4th Largest Crypto
On the flip side, negative values for short-term holders usually indicate bearish sentiment, as they tend to take quick profits, often triggering price declines.
However, with long-term holders in the profit zone, they are more likely to hold onto their XRP tokens. This behavior could offer the needed stability for XRP’s price, increasing the chances for another breakout attempt.
Abimbola Adu
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