XRP dropped by 1% last week and has been hovering below $2.60, but the increase in futures activity may soon bring about changes, raising hopes for a bullish XRP price outlook.
According to Crypto News on the 27th (local time), Bitcoin (BTC) is showing a resolve to retest its recent all-time high of nearly $112,000, with trading volume increasing by 8.4% in the past 24 hours to currently stand at $2.2 billion.
Despite the Token's relatively calm price movement, futures market data from CoinGlass shows significant activity.
The open interest for XRP futures on major exchanges increased from $3.6 billion on May 7th to $4.8 billion, a 29.7% increase in less than a month. However, during this period, the price only rose by 8.5% from $2.13 to $2.31.
XRP's daily chart shows that the price has broken through the bullish structure and has already retested the previous support level from below.
While this is a bearish signal in the short term, it does not necessarily indicate an imminent collapse, as the market needs to secure liquidity for the next upward movement.
The 200-day Exponential Moving Average (EMA) coincides with the key psychological level of $2 per token, making it the most likely landing point for XRP.
Bears are likely to push the price to this threshold in the next few days to secure additional liquidity and promote a clear movement.
In a bullish market, short squeezes tend to be one of the most effective ways to drive asset prices higher. Therefore, a breakdown below $2 could be the necessary element for the Token to regain buyers' interest and support a bullish XRP price outlook to at least $3.
Patient investors and traders will benefit the most by waiting for the optimal entry point, possibly around the $2 level.
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