As open interest increases, the price of XRP may rise.
Investors are increasing their bets on the price loss of the XRP token. Could XRP Be Ready To See More Reversal Speed?
Traders are increasingly betting on the price of XRP
More traders are betting on the price of XRP (XRP) to rise, as reflected by a jump in demand (OI), according to Woominyu, author of CryptoQuant's verified market analysis.
In a June 18 research report:
“This trend shows that as open interest increases with price, investors are opening more positions in anticipation of an increase in XRP price. This higher demand indicates that additional trading activity is occurring in XRP.”
However, the author cautions that this may turn into price volatility. wrote:
“When open interest increases with prices, this may reflect investors' expectations and actions, but it can also cause sudden market changes, so caution is needed.”
According to Binance data, the price of XRP has decreased by 19% year-to-date (YTD) since the beginning of the year, trading at the $0.49 mark.
Open demand for XRP began to increase on June 11 and expectations of a loss may be related to the developments made by Ripple at the Securities and Exchange Commission (SEC).
On June 13, Ripple requested a fine of “no more than $10 million” — far less than the regulator's $876.3 million civil fine — citing the SEC's dispute with Terraform Labs.
In a June 14 letter to Judge Torres a day later, the SEC argued that “this minimum sentence cannot satisfy the purposes of the Civil Code.”
In the year It may come as a sign of relief to investors, considering the pair have been in their court battle over the 2020 SEC Ripple's sale of unregistered securities.
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Is the price of XRP in the process of disappearing?
Based on a key technical chart formation, the XRP token may be on track for a price loss by the end of June.
On the daily chart, XRP has formed a descending triangle, a chart pattern that could indicate a price divergence as the wedges of the triangle narrow. If this can hold above the $0.47 support mark, XRP price may trigger a rally.
XRP's breakouts also hint at a possible breakout, as long as the price chart repeats the patterns that emerged after February 2024, XRP price broke out of a similar ascending triangle pattern.
Fractal patterns are used by technical traders to identify key support and resistance levels and trend reversals based on historical data.
At the same time, traders should take into account the negative news related to the SEC vs Ripple lawsuit, which may affect the market, sending the price of XRP below the current support.
Related: Bitcoin Price ‘Cluster' Hints For More Downside: Is BTC About to Lose 64K Support?
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
