- XRP is poised for a 23% breakout to its record high of $3.66, reflecting positive sentiment in the market.
- XRP futures Open Interest and funding rate rise, indicating growing interest from traders leveraging positions.
- A rejection at $3.00 could delay the potential breakout.
Ripple (XRP) displays bullish potential, trading above $2.98 on Monday as cryptocurrency prices generally recover. A break above the immediate $3.00 hurdle could bolster XRP’s technical structure, increasing the chances of a 23% breakout to its all-time high of $3.66 reached on July 18.
XRP gains bullish momentum as Open Interest and funding rate rebound
The XRP futures market shows signs of life after several weeks of volatility. This bullish outlook is reflected by the total Open Interest (OI), which averages at $7.58 billion, up from $7.37 billion recorded on Sunday.
OI refers to the notional value of outstanding futures contracts. A steady increase implies that traders are repositioning themselves, following the correction from the all-time high, which has found support at $2.72 as of September 1.
Arab Chain, an analyst highlighted via CryptoQuant, stated that “the stabilization of OI after the peak, along with the price’s decline from its highs, indicates a repositioning phase. Leveraged positions remain in the market, but at a lower level than during the July or August peak.”
XRP Futures Open Interest | Source: CoinGlass
The steady increase in the futures funding rate to 0.0083% at the time of writing from 0.0047% on September 2 supports the bullish outlook for XRP derivatives. A steady increase in this metric suggests that more traders are leveraging long positions in XRP, thereby bolstering bullish market sentiment.
XRP Futures Funding Rate| Source: CoinGlass
Technical Outlook: Assessing XRP’s bullish structure
XRP holds above key moving averages on the 4-hour chart, including the 200-period EMA at $2.92, the 100-period EMA at $2.88 and the 50-period EMA at $2.85, signaling positive market sentiment.
A buy signal from the Moving Average Convergence Divergence (MACD) indicator, which has been in place since Sunday, supports a potential bullish outcome. This could propel XRP to a 23% breakout above its current level and reach its record high of $3.66.
XRP/USDT 4-hour chart
Traders will look for a short-term break above the $3.00 pivotal level to validate XRP’s bullish potential. However, with the Relative Strength (RSI) showing signs of retreating from overbought territory, a rejection is on the cards, which may delay the move to $3.66.