XRP continues to rise in price and is trading at levels not seen since November 2021. Now, the Cryptocurrency issued by the company Ripple Labs has the next objective of overcoming a key resistance: $2.
As explained in Criptopedia, educational section of CriptoNoticias, in trading the term Bitcoin/” target=”_blank” rel=”noreferrer noopener”>endurance is defined as a price level that an asset had difficulty breaking through in the past. This is a kind of psychological barrier that the cryptocurrency tried to break on several occasions without success.
Likewise, it is important to add that resistance is a supply level, since investors They increase profit taking by selling the digital currencies accumulated since the beginning of the cycle.
In the particular case of XRPalthough it only faced the $2 zone twice, it is worth remembering that that was the barrier that marked the end of the previous bullish cycleas seen in the following graph of TradingView.
Currently, the price of the digital asset is $1.66.
XRP price throughout its history. Fountain: TradingView.
Although the price of the asset is 56% below $3.84the all-time high (ATH) it reached in January 2018, there is every reason to believe that XRP may enter a bullish cycle in the short term.
In principle, because the open interest (OI) of XRP exceeded $2.73 billion for the first time in its historyaccording to Coinglass explorer data.
The OI is an important indicator that provides information about the market sentiment, trading activity and liquidity. It also reflects the number of futures contracts that are currently in circulation.
When the number of new contracts grows, whether long positions (upward price bets) or short positions (downward price bets), it exceeds that of closed contracts.
Thus, an increase in OI reflects greater activity in terms of liquidity and trading volume. That’s why, If open interest rises, it is a bullish signal among investors.
Another issue to highlight is that, thanks to this price increase, the currency issued by Ripple Labs surpassed BNB in terms of market capitalization and, at the time of publication of this note, It is the fifth most valuable asset.
Finally, it must be noted that Donald Trump’s victory in the United States elections sparked optimism in the market. During his campaign, he expressed your support for cryptocurrencies and promised friendly regulations for the sector.
This last point is important because there is 4 companies who submitted applications to launch exchange-traded funds (ETFs) based on XRP. If they are approved, That would facilitate access for traditional investors and would also increase the liquidity of the asset.
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