In the last 24 hours, XRP has given in to the bearish pressure across the cryptocurrency market. The token traded at $0.489 on June 21 at 01:16 a.m. EST after a slight 1% decline.
XRP has shown much resistance in the past week despite the recent bloodbath witnessed across the cryptocurrency market.
The token has been the top gainer among the top 10 largest cryptocurrencies by market capitalization in the last seven days.
XRP Price Outlook
The broader cryptocurrency market has remained calm in the last 24 hours, with the volatility cooling off significantly.
XRP’s trading volumes have cooled, which is why there are fewer significant price movements. According to CoinMarketCap data, XRP trading volumes have increased by around 9%.
The trading volumes mainly come from buyers looking to benefit from the series of positive developments with the token.
The Relative Strength Index (RSI) is at 64, leaning towards a high buying momentum.
These buyers are making the case for an uptrend. XRP is headed toward a critical breakout zone of $0.50 if the gains continue.
XRP has faced resistance at $0.491 several times. If this level is overcome, the XRP price could create a new monthly high of $0.55.
The Moving Average Convergence Divergence (MACD) line also shows a bullish reversal. The MACD line crossed above the signal line, while the MACD bars turned positive. This indicator is showing an upward momentum.
The re-entry of buyers into the XRP market comes amid growing market dominance.
With short-term profit takers and arbitrage traders seeking profits in a low-volatile market, XRP is becoming a preferred option.
On June 15, XRP’s market cap was at $25.86 billion, according to CoinMarketCap. It has since grown to $27.23 billion despite this week’s sell-side pressure in the broader market.
The token’s resilience in the face of the bear market appears to be attracting buyers, further supporting the price growth.
XRP’s Rising Open Interest Signals Bullish Momentum
XRP’s Open Interest (OI) has also surged, signaling that investors are opening positions anticipating a price increase. Open interest shows the number of outstanding XRP contracts that have yet to be settled.
According to a CryptoQuant report, an increase in XRP’s OI alongside a price increase shows that investors anticipate upward momentum.
With the 2% weekly gain amid widespread market turmoil, the high OI in XRP indicates active market participation and high liquidity, further pointing to a healthy price action.
The report said,
This trend suggests that as open interest rises alongside price, investors are opening more positions with the expectation of XRP’s price increase. This heightened interest indicates that more trading activity is occurring with XRP.
However, traders must be cautious as the high open interest could also show potential market volatility. XRP could record significant price changes if traders rush to adjust their positions.
Ripple California Lawsuit Heads to Trial
Ripple is facing a lawsuit in California. Judge Phyllis Hamilton ruled that a case against Ripple CEO Brad Garlinghouse, accusing him of making “misleading statements” about XRP, will go to trial.
Garlinghouse is accused of misrepresenting XRP, with the plaintiffs claiming that the token is a security. The suit alleges that the Ripple CEO violated US securities laws.
Ripple has been loggerheading with US regulators over the status of XRP. The company remains adamant that XRP is a commodity, not a security.
Ripple’s efforts to bring crypto regulatory clarity in the US have also been seen in its lobbying for pro-crypto policies.
