Key Insights
- XRP has been flashing bullish signals lately, including a recent spike in open interest.
- The cryptocurrency is trading in a bull flag formation and could be eyeing a comeback above $3.
- Prominent analyst Captain Faibik predicts a 50% surge for XRP towards $3.66.
- The cryptocurrency is performing well in terms of institutional interest and could be a major performer soon.
Ripple’s XRP is starting to gain attention again, especially as it inches closer towards a massive breakout.
According to recent market activity, the bullish momentum is growing, and is setting the stage for a larger rally.
If things go as planned, XRP price could be in for a massive rally that leads to a new all time high.
Open Interest Surge Signals Bullish Liquidity
On Monday this week, XRP futures open interest surged by over 40% according to data from Coinglass.
This metric climbed from 2.71 billion XRP to 4.49 billion XRP, as illustrated below.
The bulls have kept this metric steady ever since, judging by its current value of $4.4 billion.
For some context, Open Interest is the number of unsettled contracts in a derivatives market.
When it goes up, it indicates that an asset is receiving a great deal of fresh liquidity.
This uptick in XRP’s open interest happened just as XRP attempts to break out of a bullish pennant on the daily chart.
Interestingly, the timing of this Open Interest surge happened with changes in the broader crypto market around key global events.
Some of these include Donald Trump’s incoming inauguration on 20 January, along with the start of a new year.
Exchange and Investment Product Flows Support XRP’s Bullish Outlook
Another factor that supports XRP’s bullish narrative is the exchange activity around the cryptocurrency.
CoinGlass data shows that over the past week, exchanges like Binance, OKX and Bybit collectively recorded around $11 billion in trading volume.
This metric alone shows strong buying pressure.
Interestingly though, Coinbase experienced relatively low trading volumes, indicating low activity from US-based investors.
At the same time, CoinShares detailed in a recent report that XRP-focused investment products stood out in the crypto market last week.
The analytics firm noted that XRP registered $5.7 million in net inflows last week—which is the highest across all digital asset investment products.
In essence, institutional investors are highly interested in XRP.
This is without mentioning how recent reports from the Bank of America show that XRP is now exclusively used for 100% of its internal transactions.
Here’s an XRP price prediction for what comes next.
Bullish Flag Pattern Hints at 50% Price Rally.
According to technical analysis by prominent crypto analyst Captain Faibik, the price of XRP “looks Promising for another +50% Bullish Rally.”
The analyst pointed out a bullish flag formation on the cryptocurrency’s daily chart, suggesting that the cryptocurrency will soon break the $3 mark.
This bullish flag pattern is largely regarded as a continuation signal and should see XRP enter a strong upward surge towards $3.66.
The cryptocurrency is testing the upper boundary of this bullish flag.
If the XRP price USD breaks out and holds its position above the upper trendline, it could indeed complete this 50% upsurge as Captain Faibik indicated.
A rally to $3.30 would place XRP just 16.36% shy of its all-time high of $3.84, which it saw in the 2021 bull run.
This prediction aligns with the growing market interest and shows XRP’s ability to become one of the best performers in the market.