Since last weekend, the XRP price recorded a notable recovery from the $2.07 support to the $2.3 current trading value, projecting a 23% surge. This upswing, while following broader market trends, gave a major breakout from the resistance trendline of a bull flag pattern, signaling the potential for higher surge. However, the downward trend in XRP’s futures open interests suggests a possible slowdown in recovery momentum.
Futures Open Interest Dips Despite Price Surge
By press time, the Ripple cryptocurrency trades at $2.3 market with an intraday loss of 0.43%. This pullback is likely a temporary halt for buyers to regain momentum, the coin price showcasing its sustainability above key daily exponential moving averages (20, 50, and 100).
Adding to the bullish note, the XRP OI-weighted funding rate climbs to 0.01% on the market. Typically, a positive value suggests the buyers are willing to pay a premium to hold a long position in the market, suggesting a bullish market scenario.
However, the Coinglass derivative data provided shows a notable decline in XRP futures open interest. In the last four weeks, the OI value has plunged from $5.52 billion to $4.28 billion, registering an 18% decline. The drop implies a reduction in speculative activity and trader commitment toward this coin in the derivatives market.
This could lower the momentum in Ripple coin and stall its potential rally post-breakout.
XRP Price Bull-Flag Breakout Hints Major Rally
Since mid-May, the XRP price has been confined within two downsloping trendlines, forming a bull flag pattern. The chart pattern consists of a long pole, displaying the dominant trend, and a short pullback to replenish momentum.
On June 8th, the coin price broke decisively from the resistance trendline of the flag pattern, signaling the continuation of the bullish trend. As the open interest data suggests a slowdown in bullish momentum, the coin price may consolidate above the 100-day moving average for the remainder of the week.
If the price holds its support, the post-breakout rally could challenge $2.6 or drive an extended rally to $3.11.
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