XRP Surge: Traders Pile In as $1.36B in Open Interest Returns
After a volatile week that saw XRP tumble to multi-week lows of $2.38, the digital asset is showing signs of renewed strength.
According to market analyst Paul Bennett, XRP bounced nearly 8% over the weekend as $1.36 billion in open interest flooded back into the market, a clear signal of aggressive dip buying and rising speculative activity.
This influx of capital marks a turning point in trader sentiment following the recent market-wide correction.
Notably, the surge in open interest, a measure of outstanding futures and derivatives contracts, suggests that both retail and institutional investors are re-entering positions with heightened conviction.
Bennett interprets this as a sign that market participants view XRP’s recent pullback as a buying opportunity rather than the start of a deeper downturn.
Bennett notes that the market is now testing key resistance and liquidity zones between $2.55 and $2.70, levels that could determine whether XRP’s rebound evolves into a sustained rally or fizzles into a temporary bounce.
A decisive break above this region could open the door for a broader recovery, with traders eyeing the psychological $3 level as the next major target.
However, the path forward remains uncertain. While on-chain data shows improving sentiment and a modest uptick in whale accumulation, overall trading volumes remain below their September peaks.
Therefore, this suggests that while optimism is returning, market confidence is still fragile. Technical indicators like the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) show XRP approaching overbought territory, hinting at possible near-term consolidation.
Despite these cautionary signals, XRP’s ability to rebound swiftly after last week’s crash highlights growing resilience within the market. The token’s renewed activity comes amid broader optimism surrounding blockchain-based payments and cross-border settlement use cases, sectors where XRP continues to maintain strong utility and adoption potential.
Conclusion
XRP’s sharp rebound and $1.36B surge in open interest signal a pivotal shift in market sentiment. Investors are treating recent weakness as a buying opportunity, reflecting renewed confidence in the token’s long-term potential.
Therefore, sustaining this momentum will hinge on XRP’s ability to hold key resistance levels and preserve strong trading volume.
Source: https://coinpaper.com/11696/xrp-stampede-1-36-b-open-interest-surge-sparks-aggressive-dip-buying
