As shown in the chart above, between August 5 and August 18, the open interest in XRP increased from $334.1 million to $427.9 million, an increase of 28.07%.
At the same time, the price of XRP increased by 35% over the same period, outpacing the growth of open interest.
This trend suggests that the current XRP surge is being driven by spot buying rather than speculative trading activity. A surge driven by spot buying is often more sustainable as it indicates real demand for the asset, which can provide strong support and reduce the likelihood of major corrections.
The increase in open interest also fits with the notion that BTC.D’s decline is due to investors buying altcoins like XRP in anticipation of an expected rate cut. Should this scenario play out, XRP could extend its 6% weekend rally in the coming days.
XRP price prediction: 0.61 USD hurdle ahead
Looking ahead, the XRP price is facing a potential hurdle at the $0.61 resistance level. The Parabolic SAR and Donchian channels on the daily chart suggest a cautious outlook despite the recent rally.
The Parabolic SAR, currently below the price, indicates that the uptrend remains intact. However, the Donchian Channels suggest that the price is approaching the upper boundary of its recent range, which is usually a signal that the asset may face resistance.
