XRP is showing strong signs of a potential rally toward the $3 price level, outperforming competitors with a recent 3.77% surge in the past 24 hours. Key indicators suggest growing bullish momentum, including a record-breaking increase in Open Interest (OI) and technical signals pointing to a possible short squeeze.
XRP Open Interest Surges Over $1 Billion in One Week
Recent data from Glassnode reveals a dramatic rise in XRP Futures Open Interest, climbing 41.6% from $2.42B to $3.42B in just one week. This surge coincides with XRP’s price movement from $2.14 to $2.48, indicating heightened speculative activity and growing trader confidence.
Analyst BorisVest notes that after a steep decline in OI (from $1.5B to $530M), leveraged positions have been rebuilding, suggesting renewed bullish sentiment.
👉 Why XRP’s Open Interest surge matters for traders
Is an XRP Short Squeeze Imminent? Funding Rates & Taker Activity
While the XRP Funding Rate remains neutral, the Taker Buy/Sell Ratio sits at 0.91, signaling strong selling pressure. However, rising short positions have not suppressed XRP’s price—instead, stability suggests absorption by larger buyers.
This setup often precedes a short squeeze, where a rapid price surge forces short sellers to cover positions, accelerating upward momentum. Key signs include:
- Increasing short interest amid steady price action
- Smart money accumulation before a breakout
XRP Technical Analysis: Breakout Signals Toward $3
A closer look at XRP’s daily chart reveals:
- Bollinger Band breakout (price piercing the upper band)
- Rising On-Balance Volume (OBV), indicating accumulation
- Key resistance levels at $2.85–$3
If XRP holds above $2.50**, the next target is **$3, with potential for further gains toward $3.50 if momentum continues.
👉 How traders can capitalize on XRP’s bullish setup
FAQs: XRP Price Surge and Market Dynamics
1. What does rising Open Interest mean for XRP?
High Open Interest suggests increasing trader bets on XRP’s price movement, often preceding volatility. The recent $1B surge indicates strong speculative interest.
2. Could XRP face a short squeeze?
Yes—rising short positions amid stable prices suggest sellers are being absorbed, a classic precursor to a squeeze.
3. What’s the next key resistance for XRP?
The $2.85–$3 zone is critical. A breakout could propel XRP toward $3.50.
4. How reliable are Bollinger Band breakouts for XRP?
Breakouts from tight bands often signal explosive moves, especially when paired with rising OBV.
Conclusion: XRP’s Path to $3
With surging Open Interest, bullish technicals, and short squeeze potential, XRP appears primed for a major upward move. Traders should monitor:
- Price stability above $2.50
- Continued OI growth
- Breakthrough of the $3 resistance
Disclaimer: This content is for educational purposes only and not financial advice. Always conduct independent research before trading.