NOIDA (CoinChapter.com)—The XRP price has been on a strong upward trajectory, recently climbing past the $0.70 level. Notable accumulation by larger wallet holders and a surge in open interest could explain why the price is up today.
The positive funding rate reflects bullish sentiment, suggesting investors expect further gains. Speculation around Trump’s pro-crypto stance is adding fuel, supporting the XRP price’s bullish momentum.
Accumulation and Bullish Signals Could Be Why XRP Price Is Up
As XRP price started rising, whale wallets showed substantial accumulation. Data shows an increase in addresses holding over 10,000 XRP and other high-balance accounts, suggesting that whales are positioning for a continued price rally.
This buildup of XRP holdings highlights a strong belief in future price appreciation, reinforcing the bullish momentum currently seen in the market.
Furthermore, the consistently positive funding rate in XRP futures markets signifies a dominance of long positions, where traders are willing to pay a premium to bet on an XRP price increase. Rising open interest, reflecting a significant inflow of capital into XRP futures, further supports this bullish sentiment.
The increase in open interest, combined with positive funding, points to both speculative interest and a stable upward trajectory for the XRP price.
These factors collectively create a favorable outlook for XRP price. However, the concentration of long positions and heavy accumulation by larger addresses introduces the risk of volatility should sentiment shift.
Technical Setup Could Help Rally Continue
Moreover, the XRP USD pair has formed a bullish technical setup called the ‘ascending pattern.’
The recent price rally has helped the token break out of the pattern, which could be why XRP price is up today. Traders might be entering the market hoping to capitalize on the chance of XRP confirming the breakout.
The pattern occurs when a horizontal resistance line connects swing highs while an ascending trendline links higher swing lows. The setup suggests increasing buying pressure as the price approaches the resistance level.
The significance of this pattern lies in the potential for a breakout. A surge in trading volume as the price nears the resistance level typically confirms the likelihood of a breakout above it.
The ascending triangle formation indicates that buyers are gaining strength, and a successful breakout could lead to further upward momentum for the XRP USD pair. This technical setup provides a clear framework for assessing potential price movements in the near term.
In technical analysis, the pattern’s price target is calculated by measuring its height and projecting it from the breakout point. For the XRP crypto coin, this calculation suggests a price target near $1, a spike of more than 42% from the current level.