Cryptocurrency analyst CryptoInsightUK suggests that XRP has the potential to experience a swift surge, possibly reaching the range of $0.89 to $1.35. This optimistic outlook follows an influx of over $100 million in open interest observed on November 14.
In a subsequent analysis focusing on XRP’s unique price movements, CryptoInsightUK highlighted its distinctiveness. He did this by comparing XRP to others discussed in a prior report.
$100M in Open Interest
The analyst observed a significant development as over $100 million in open interest (OI) flooded the market during the price surge on Nov. 14. Fake reports of a BlackRock XRP ETF filing triggered the surge. However, XRP immediately corrected the gains of that day.
Despite the subsequent price drop, the OI remained stable, indicating substantial short positions on XRP. Interestingly, XRP’s OI currently stands above $464 million, even after a 7% decline in the last 24 hours.
Moreover, CryptoInsightUK highlighted a 4-hour chart showing the token trading below a descending trendline since its drop from $0.73 on Nov. 6.
CryptoInsightUK emphasised the importance of XRP’s ability to break above the descending trendline. He suggested it could trigger a massive move as market participants rush to close their short positions.
For traders to cover their short positions, they would need to purchase more XRP, ultimately leading to a surge in buying activity. This, in turn, could trigger stop-loss orders, propelling the token on a swift upward trajectory.
XRP on the Rise: Could It Reach $1.35?
Furthermore, the analyst identified a bullish divergence on the 4-hour chart. He highlighted that XRP had formed a higher low while the Relative Strength Index (RSI) indicated an equal low.
This divergence, coupled with the prevalent short positions, underpins CryptoInsightUK’s forecast of XRP surging to a range between $0.89 and $1.35. The analyst admitted a miscalculation in predicting the exact date of the rally to this target. However, he remains confident in the inevitable upswing, driven by the need to liquidate leveraged shorts.
Notably, another analyst interjected, suggesting a potential dip below $0.60 before witnessing the projected uptrend. The analyst referenced historical precedence, noting that the appearance of long-wick, red candles rarely signifies the market bottom for the token.
In response, CryptoInsightUK acknowledged the likelihood of a retest of lows. Regardless, he emphasised the overlooked factor. Given the significant number of short positions, he emphasised the rapid upward potential of XRP once the push begins. Despite a 3.6% decline in the past 24 hours, the token currently trades at $0.6131.