The cryptocurrency market has opened the new weekly candle bullish as Bitcoin and the other major coins are in green.

XRP, Ripple’s native coin, is up 5% in the last 24 hours and now trades at $1.48 per coin.

The rally comes as the broader cryptocurrency market shrugs off the effects of the ongoing US-Iran tensions. 

XRP’s momentum indicators switched bullish a few days ago, indicating that the price could soar higher in the near term.

Furthermore, the derivatives data also indicate that retail investors are regaining confidence in XRP, while institutional demand remains flat.

XRP is up 5% in the last 24 hours and is now trading at $1.48 per coin. The positive performance comes as the broader crypto market rallied over the weekend.

XRP’s surge is primarily driven by increased retail demand over the past few days.

According to CoinGlass, XRP’s futures Open Interest (OI) reads $2.74 billion on Monday, up from the $2.55 billion recorded the previous day.

The OI remains significantly below the $10.64 billion recorded in June when XRP hit $3.66.

However, it has been steadily increasing over the past few days, suggesting growing retail participation.

Retail investors are increasing their exposure, piling into XRP long positions.

This is evident from CoinGlass’s Open Interest (OI)-Weighted Funding Rate, which stands at 0.0097% on Friday, up from 0.0015% the previous day. 

The metric had stayed in the positive region since last week, underscoring an improving risk appetite.

The XRP/USD daily chart is bearish and efficient despite the recent rally. Momentum indicators on the daily chart have switched bullish, indicating that the bulls are now in control. 

The RSI at 58 on the daily chart shifts back above its midline, suggesting buyers are regaining initiative after a prolonged mid-range phase. 

Furthermore, the MACD indicator remains above its signal line on the same chart, confirming XRP's short-term bullish case.

Currently, XRP is trading below the declining 50-day, 100-day, and 200-day EMAs, which continue to frame a broader downtrend.

If the rally continues, XRP could grab the Inducement Liquidity (ILQ) on the daily candle at $1.66. It could experience a slight pullback in this region as sell orders are accumulating. 

An extended bullish run would allow XRP to test the $1.91 resistance level for the first time since January 29. 

However, the market could experience a correction following days of bullish price action. Initial support emerges at $1.40, defined by recent closing reactions.

If the bulls fail to defend this support level, XRP could retest the $1.36 and $1.34 supports in the near term.

Below that, $1.30 becomes a pivotal downside level which, if lost, would expose XRP to further losses.

The post XRP surges 5% as traders pile in: can the rally push it to $2? appeared first on Invezz

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