Ripple’s XRP is showing signs of a bull market as data from Binance suggests rapid absorption of sell-side pressure. XRP price has climbed 20% over the past week, pushing it ahead of Tether (USDT) to become the third-largest cryptocurrency, after Bitcoin and Ethereum by market cap. As of writing, XRP is testing a strong resistance at $2.60. Moreover, the price since been struggling to break this level twice in the last two weeks.
Despite these hurdles, data from Binance futures suggests bulls are still in control, with buying pressure continuing to absorb the sell orders. The XRP Taker Buy/Sell ratio stands at 0.91, meaning short sellers are dominating the market. However, the price of XRP has managed to stay within the $2.30 to $2.60 range, indicating that sell orders are being absorbed effectively.
According to CryptoQuant’s analyst, BorisVest, this trend may signal a mild short squeeze, as short sellers are forced to cover their positions which could push the price higher. Furthermore, XRP’s open interest on Binance has surged by $344 million over the past six days. This means there is more demand for the coin at the moment.
After the closure of many leveraged positions last month, the increase in open interest suggests that retail traders are re-engaging with XRP, and volatility may be on the horizon.
Additionally, the funding rate for XRP has turned positive again and is currently neutral. This means there is a balance between long and short positions, which could trigger a short squeeze if short positions continue to rise.
CryptoQuant’s data shows that despite the aggressive selling, the XRP price has remained stable. Binance data suggests the market is quietly accumulating XRP in anticipation of a potential upward move.
In addition to Binance’s data, XRP is getting a boost from the launch of the first U.S. XRP ETF “Teucrium XRP leveraged futures ETF (XXRP)” in April, which has already attracted $117 million in net assets,
If XRP price manages to break the $2.60 resistance and close above it, it could be set for a rally towards the all-time high of $3.40. The ADX line, which measures the strength of a trend, shows that the uptrend is strong enough to break through resistance.
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