XRP Eyes Continued Strength Amid Increased Open Interest and Support at $2.38

XRP has successfully reclaimed the key support level of $2.38, signaling a possible shift in market dynamics as leverage builds up and selling pressure gets absorbed.

• XRP Open Interest surged 41%, revealing a strong wave of speculative confidence behind Ripple’s breakout and trend reversal.

• Neutral Funding Rates and absorbed sell pressure suggest bulls may be quietly building for a sustained rally.

This article explores the latest XRP price movements, highlighting market dynamics, trader sentiment, and potential breakout targets in under 160 characters.

XRP Open Interest Climbing Sharply Signals Renewed Conviction

Futures Open Interest (OI) for XRP saw a dramatic increase of over $1 billion in the past week, rising from $2.42 billion to $3.42 billion—a stellar 41.6% increase.

This aggressive spike reflects renewed directional conviction, coinciding with a price rebound from $2.14 to $2.48. However, the uptick in OI without a corresponding rise in Funding Rates (FR) raises concerns about potential overcrowding in long positions.

Nevertheless, traders currently seem to be positioning for a sustained upside, indicating an optimistic outlook for Ripple’s price trajectory.

Source: Glassnode

Breakout Confirmed: Will Bulls Sustain Momentum?

XRP has successfully broken out of a descending channel that constrained price movements since March. Holding above the crucial $2.38 level, which had previously acted as resistance, this now serves as a supportive barrier.

Fibonacci projections set upside targets at $2.82, $3.01, and $3.38, contingent on bulls maintaining their control. Nevertheless, the Stochastic RSI is currently peaking above 98, indicating possible overbought conditions that may prompt a short-term retracement.

Despite this risk, the absence of major resistance clusters provides an open path for further bullish advancements. The bullish structure remains intact as long as XRP sustains above $2.38.

A failure to hold this level could reignite selling pressure and invalidate the breakout, making it crucial for traders to monitor price behavior closely, particularly concerning leverage activity.

Source: TradingView

Funding Rate Signals Indecision in the Market

Despite the notable increase in leverage, XRP’s OI-weighted Funding Rate stands at +0.0128%, suggesting a neutral positioning among traders. This neutrality implies the market remains delicately balanced, leaving aggressive long positions potentially exposed to a squeeze should sentiment shift.

Conversely, the neutral funding environment allows for a healthy market continuation, as a significant long bias has yet to establish itself.

Source: CoinGlass

Will XRP Maintain $2.38 and Rally Higher?

Ripple’s recent technical breakout combined with a sharp rise in Open Interest signals increasing trader conviction and bullish momentum. The move above $2.38 represents a crucial shift in the market’s structural dynamics, with maintaining this level key to the sustainability of the rally.

However, the Stochastic RSI’s position in overbought territory and the neutral Funding Rates indicate a potential standoff between bulls and bears. If buyers can continue to absorb selling pressure while keeping above support, a push toward the $3.00 mark may become increasingly viable.

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Conclusion

Traders should closely monitor XRP’s price stability around the $2.38 support level. The interplay of strong Open Interest and neutral Funding Rates sets the stage for a possible bullish continuation, provided the market navigates potential retracement risks effectively.