XRP Traders Open $465M Positions after 17% Price Rebound

XRP price rebounded 17% over the weekend, hitting a 3-day peak of $0.45 on Sunday July, 7, technical indicators suggest more buyers could ape-in in the week ahead. 

XRP Price Rebounds 17% After Dovish NFP Reports

Mirroring the broader crypto market trend, XRP has experienced significant downward volatility since the start of July 2024. But that negative trend flipped over the weekend as XRP bulls swing into action after prices fell to a new 2024 low of $0.38 on Friday, July 5.

XRP found instant buyers as prices fell to yearly-lows, a move that could now spark a major rebound phase in the week ahead.

The chart above shows how XRP price had dipped to $0.382 on Friday, its lowest in over 14 months dating back to March 2023. But since then, strategic bull traders have swooped in to scoop the dip as prices fell to the yearly-timeframe  record low.

Thanks to the weekend buying frenzy over the weekend XRP price has now surged 17.4% to reclaim the $0.43 level at the time of writing on Sunday July. Looking beyond the price data, the activities observed in the XRP derivatives markets suggests that more traders are pushing for more upside in the week ahead.

Bull Traders Push XRP Open Interest to $465M Amid Market Dip

The recent activities observed among XRP speculative traders has flashed positive signals for possible price advancement in the coming week. While price fell to a 14-month low Friday, XRP futures markets witnessed major capital inflows, signalling growing market liquidity and rising investor interest.

XRP open interest fell to $447.8 million on Friday, but has since increased to $465.9 million at the time of writing on July 7. This shows that XRP speculative traders have brought in fresh capital inflows worth $18 million within the last 48-hours alone.

But notably the $18 million surge represents just less than a 5% increase in open interest, which is far lower than the 17.4% price rebound recorded during that period.

When the price of an asset surges faster than capital inflows towards the futures markets, it suggest that the current price uptrend is being driven, more by organic spot demand than speculative activity.

Hence, XRP price outpacing the futures markets inflows over the weekend present a positive signal as the new week unfolds.

XRP Price Forecast; $0.45 Retest in The Week Ahead

The current price of XRP is $0.4300, marking a 4.21% decrease for the day. Recent price action shows significant volatility, with a noticeable drop over the last two days. This decline was substantial, with a two-day loss of 17.40%.

The price is now hovering near the lower Bollinger Band, which is at $0.4304, suggesting that it may be entering an oversold territory.

The Relative Strength Index (RSI) is at 34.03, just above the oversold threshold of 30. This indicates that XRP might be close to a potential reversal point if buying pressure increases. The RSI has been trending downward, aligning with the recent bearish momentum in the market.

Key support levels to watch are at $0.42 and the psychological level of $0.40. These levels are crucial as a break below them could signal further downside. On the upside, the immediate resistance is at $0.45, a previous support level that may now act as a barrier to upward movement.

A successful retest and hold above this level could pave the way for a potential recovery in the week ahead.