Team CryptoInsightfull 
TL;DR
-
XRP shows strong weekly performance, with analysts predicting further gains due to key breakouts and bullish indicators.
-
Contrary to the optimism, traders are advised to be cautious as XRP’s open interest has surged lately.
Time for a New Rally?
Despite witnessing a substantial downtrend in the past 24 hours, the price of XRP is well on the green on a weekly scale. Currently, it trades at approximately $2.35, and many market observers suggest it could reach fresh peaks in the near future.
The X user Dark Defender recently outlined three important reasons why Ripple’s native token remains in a bullish mode. The analyst claimed that the asset successfully broke the multi-year resistance line in November 2024 and tested previous resistance as support. Additionally, they assumed that XRP’s indicators signal a potential surge.
“I’ve never seen XRP bullish more than this before,” Dark Defender stated.
The trader, using the X moniker CRYPTOWZRD, also chipped in. They maintained that in the past 24 hours, XRP followed BTC and closed bearish. “However, I expect to see further upside pressure and higher volatility during the weekend from XRP led by XRP/BTC,” they added.
Other analysts giving their two cents on the matter over the last few days include JAVON MARKS and EGRAG CRYPTO. The former claimed that the pattern XRP broke out of in November 2024 resembles that of 2017. As such, they expect a bull run “greater than many think or even imagine to possible.”
EGRAG CRYPTO made a truly shocking prediction. The analyst suggested that XRP could be gearing up for its next “big leap” due to several factors, such as a retest of “the bull market support band” and a “noise consolidation” at the $2-$3.40 range. The market observer thinks that if history repeats, this could result in a price explosion in the $27-$222 range.
Reaching such high levels would require XRP’s market cap to explode to at least $1.5 trillion. With the asset’s current capitalization under $140 billion, this prediction seems unlikely.
Investors Should be Cautious
Despite the overall bullish forecasts from numerous industry participants, traders should tread carefully when entering XRP’s ecosystem since the price can swing significantly in any direction. One factor doubling down on that assumption is the coin’s open interest, which has been on the rise lately.
“The rise in XRP’s price is being driven by leveraged positions, signaling increased risk in the market. This could eventually present a good shorting opportunity, provided it’s carefully managed. XRP price action can be wild. Make sure to manage your risk,” analytics firm CryptoQuant alerted.
Binance Free $600 (CryptoPotato Exclusive): Use this link to register a new account and receive $600 exclusive welcome offer on Binance (full details).
LIMITED OFFER for CryptoPotato readers at Bybit: Use this link to register and open a $500 FREE position on any coin!
