XRP, the cryptocurrency associated with Ripple, has been exhibiting several technical and on-chain signals that suggest a potential rally to $6 in the coming weeks. The resolution of the legal dispute between Ripple and the US Securities and Exchange Commission (SEC) has contributed to the recent upward trend. As reported by Cointelegraph, the SEC has published a document outlining the legal disputes, including the decision against Ripple.
Technical Indicators and On-Chain Signals
The XRP price surged on Wednesday, rising from a low of $3.8 to an intraday high of $3.31. The open interest (OI) in XRP futures has increased by 9.5% in the last 24 hours and by 24% in the last 10 days, reaching $8.68 billion at the time of writing. This surge in OI indicates the return of derivative traders and suggests that new money, particularly from institutional investors, is entering the market.
XRP Price Chart Analysis
The daily financing rate of XRP is currently 0.04% positive, indicating that most traders are taking long positions and are bullish on the cryptocurrency. The long/short account ratio on Binance is skewed towards long positions, with 74% of accounts holding bullish positions. While this increased activity introduces liquidation risks, it underscores the growing confidence in XRP’s upward potential.
XRP Price Targets
The daily chart shows that the XRP price is still trading within a bull flag pattern, with the price exposed to $3.66 from the multi-year high price. A daily candlestick close above this area would confirm the path for XRP to increase towards the bull flag target at $5.80, representing a 77% increase from the current price.
The weekly chart shows that the XRP price has formed a rounded bottom chart pattern. Bulls are now focusing on breaking out of the pattern at $3.40. A daily candlestick close above this level would confirm a bullish breakout from the rounded bottom and propel XRP into price discovery, with a technical target of $6.70 or a 102% increase from the current level.
The relative strength index (RSI) is currently at 64, indicating that market conditions are not yet overheated. As reported by CoinTelegraph, the breakout of XRP from a seven-year double bottom structure could lead to a 10-year price increase if history repeats itself.
This article does not contain investment advice or recommendations. Every investment and trade movement involves risk, and readers should conduct their own research before making a decision. For more information, visit https://cointelegraph.com/news/xrp-futures-oi-rises-20-as-price-chart-targets-6-in-august
