XRP, the native token of the Ripple blockchain, has surged by 12% in the past 24 hours, outperforming other major cryptocurrencies. This rally has extended XRP's weekly gains to over 40%, making it the best-performing major token in the market.
The price surge is attributed to a bullish triangle pattern on XRP's long-term price charts and a substantial increase in open interest on XRP futures. Traders are anticipating more upside for the token in the coming weeks.
Alex Kuptsikevich, a senior market analyst at FxPro, noted that XRP has been underperforming the broader market for a long time, but the reversal of sentiment in the crypto market has sparked a "rise on steroids" in the once-largest altcoin. Kuptsikevich added that the latest bounce has pushed the price to 60 cents, its highest level since April, as XRP attempts to jump back into the uptrend of the past two years.
The gains in XRP started last week as traditional futures powerhouses CME and CF Benchmarks announced the debut of indices and reference rates for the token. This development has formed a triangle pattern on XRP's long-term price charts, which some popular traders believe could favor bullish action in the coming weeks.
Crypto trader @MichaelXBT posted on X, formerly known as Twitter, that he has "never seen a 7-year-long bull pennant" and that the market might be about to witness "one of the most significant breakouts in crypto history."
The triangle pattern is a popular technical analysis chart formation that helps traders understand market sentiment and spot emerging trends. Chartists generally see a breakout from a triangular pattern, especially on heavy volumes, as bullish, which may favor upward price movements.
Furthermore, the open interest on futures tracking XRP has more than doubled in the past seven days, suggesting increased expectations of future price volatility. CoinGlass data shows that XRP futures had racked up over $780 million in bets as of Wednesday, up from $420 million on July 9, bringing it to levels last seen in mid-April.
Over 60% of the XRP futures bets opened in the past 24 hours are longs, or bets on higher prices, according to data from Coinalyze. This bump in open interest, alongside trading volumes, indicates that new money is entering the market and that we are expecting XRP to rise higher.
Overall, the combination of a bullish triangle pattern, rising futures bets, and more favorable market sentiment has driven the recent surge in XRP's price. As the crypto market continues to evolve, traders will closely monitor the token's performance and the implications of these developments.
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