Why Ripple (XRP) Could Rise Further
The XRP price is still on the rise and that could continue for now.
The XRP price is still on the rise and that could continue for now. That’s indicated by developments in futures trading.
Current price moves in the crypto market are telling: while Bitcoin, Ethereum and other coins are leveling off, XRP is up about 4%. Ripple has surged more than 400% versus a year ago.
According to Boris Vest, an analyst at CryptoQuant, a new momentum could emerge with regard to the futures market.
According to data from Binance Futures, the crypto exchange’s derivatives platform, “speculation is picking up again,” Vest writes. This could “potentially set the stage for a strong move.”
Open interest has recently risen again, “which points to renewed trader interest and possibly higher volatility in the future.” The funding rate is currently neutral, “which points to a balance between long and short positions.” Yet, “under the surface” short positions are gradually increasing, “while funding declines, which could push XRP higher.”
Furthermore, retail investors are currently “going aggressively short,” the analyst notes. “If that pressure persists, but the price holds, there’s likely absorption.” Vest calls this a “possible bullish signal.”
On-chain data also points to further upside potential for the price. At the same time, the number of new XRP addresses has fallen markedly in recent weeks, which could indicate fading demand.
The XRP price is currently at $2.55 as of this writing.
