Key Points:
- 76.54% of Binance traders have taken long positions on the XRPUSDT pair.
- XRP’s Futures Open Interest has grown by 2.3% over the last four hours.
- A positive funding rate suggests that long positions are paying short positions.
- XRP is consolidating between $0.518 and $0.545, with a potential breakout looming.
XRP Traders Increase Long Positions Amid Sideways Market
XRP traders on Binance are displaying strong confidence in the altcoin, with over 76% choosing to go long on the XRPUSDT pair. According to Coinglass data, 76.54% of traders have taken long positions, while only 23.46% opted for short positions. This increase in long positions signals that many traders are optimistic about XRP’s potential price movement, despite its current struggles near a key support level of $0.52.
At the time of reporting, XRP was trading around $0.529, slightly down by 0.65% over the last 24 hours. The altcoin has seen a significant drop in trading volume, with activity decreasing by 50% compared to the previous day, reflecting hesitation among investors. Despite this, the increase in long positions could be an indication that many expect a price rebound in the near future.
Positive On-Chain Metrics Point to Bullish Sentiment
In addition to the rise in long positions, XRP’s Futures Open Interest has also grown by 2.3% over the past four hours. Open Interest is a key indicator of trader engagement, and its positive growth suggests increasing confidence in XRP. Moreover, the OI-Weighted Funding Rate for XRP stands at +0.0097%, meaning that long positions are paying short positions, another bullish indicator.
These bullish signals come at a crucial time for XRP as it consolidates in a tight range between $0.518 and $0.545. This range represents a critical zone, with traders closely monitoring whether the price will break above resistance or fall below support.
Potential Market Movements and Key Levels to Watch
If XRP manages to break out above the $0.545 level and close a daily candle beyond this resistance, analysts predict that the altcoin could surge by as much as 17%, potentially reaching $0.65. However, should XRP fail to hold its support level and break below $0.515, a drop of around 12% could occur, sending the price down to $0.455.
Liquidation data further highlights the importance of these levels. If the price falls below $0.519, around $10.21 million worth of long positions could be liquidated, adding selling pressure. On the other hand, if XRP rises above $0.541, nearly $8 million worth of short positions would be liquidated, potentially fueling a bullish rally.
In summary, while the overall market remains hesitant, the majority of XRP traders are positioning themselves for potential gains. Positive on-chain metrics, including rising open interest and a favorable funding rate, suggest that optimism is building around the altcoin. However, XRP’s next price movement will likely be determined by whether it breaks out of its current consolidation zone.
