Bitcoin hit the $113k mark on Monday but has slightly retraced since then. This has allowed altcoins to rally higher, with XRP among the best performers in the top 10. 

Ripple’s native coin has added nearly 3% to its value over the last 24 hours and is now approaching the $3 psychological mark. Traders are now preparing for a possible breakout as funding rates and Open Interest continue to increase.

The XRP futures market is now looking positive following weeks of volatility. The bullish outlook is shown by the rising Open Interest (OI) and funding rates.

Data obtained from Coinglass reveals that XRP’s Open Interest hit $8 billion on Monday, up from the $7.58 billion recorded on Sunday.

Open Interest is the notional value of outstanding futures contracts. An increase in OI means that traders are repositioning themselves following a period of correction. XRP has found support at the $2.70 region and could be gearing up for another rally. 

Analysts believe that the stabilization of OI after XRP’s recent rally, along with the price’s decline from its high, suggests that the coin is currently in a repositioning phase. While leveraged positions are still in the market, the volume is lower than during the July or August peak.

In addition to the OI, the funding rates have also increased, suggesting a possible breakout. The futures funding rate increased from 0.047%  to 0.0083% over the past week.

A steady increase in the funding rate could indicate that more traders are leveraging long positions in XRP, with market sentiment now shifting bullish. 

The XRP/USD 4-hour chart has turned bullish as XRP created a new strong support at the $2.70 mark. The coin is currently trading at $2.98 and could break above the $3 barrier soon.

XRP has held its price above key moving averages, including the 200-period EMA at $2.92, the 100-period EMA at $2.88, and the 50-period EMA at $2.85. This suggests a shift to bullish sentiment following weeks of volatility. 

The RSI of 67 shows that XRP has flipped into the buyers’ domain, with the Moving Average Convergence Divergence (MACD) indicator also flashing bullish. The momentum indicators switching bullish could see XRP target its recent high of $3.66, a 23% breakout from its current price. 

XRP breaking above the $3 mark could allow it to rally higher towards the $3.3 TLQ and resistance level in the coming days. An extended bullish run would allow it to hit the $3.66 high before targeting the $3.84 all-time high created 8 years ago. 

However, the broader market might face a correction, especially if the Fed doesn’t cut interest rates as expected. If that happens, XRP could retest the $2.70 support level over the next few days.

The post XRP could break out soon as OI and funding rates rise: Check forecast appeared first on Invezz

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