Ripple’s XRP is showing significant bullish momentum in the options market, particularly on the Deribit exchange, where a large concentration of call options is fueling optimism for a substantial price rally. Data from Amberdata reveals that 5.6 million call contracts are positioned at the $0.72 strike price for the November 29 expiry, suggesting that many traders are betting on XRP’s value rising above this level. This influx of capital into XRP’s options market not only reflects high investor interest but also creates incentives for traders to defend and drive the price beyond the key $0.72 level.
Open interest (OI), representing the total number of outstanding contracts in the derivatives market, is a crucial metric for assessing the strength of market sentiment. When OI increases alongside prices, it often indicates fresh capital flowing into the market to support a bullish uptrend. XRP’s OI growth aligns with the recent uptick in price, reinforcing a positive outlook as the November expiry approaches. This suggests that investors are anticipating further gains, with many call traders prepared to hold positions in hopes of a substantial XRP rally.
The outlook for XRP remains promising, with technical indicators on the weekly chart signaling a potential breakout. XRP recently climbed above its 100-day Simple Moving Average (SMA) and is now challenging a major resistance level near $0.7440. This resistance also marks the neckline of an inverted head-and-shoulders pattern, which is widely considered a bullish reversal signal. If XRP sustains momentum above this level, it could be on track to rally up to 50%, potentially reaching a three-year high of $1.10 last seen in November 2021.
To achieve this ambitious target, XRP would need to break through additional resistance levels at $0.8547 and $0.9380. However, the technical landscape is supportive of such a rally. Indicators like the Relative Strength Index (RSI) and the Awesome Oscillator (AO) are positioned above their neutral levels, suggesting that bullish momentum is indeed building.
Adding to the bullish sentiment, XRP recently experienced over $21 million in liquidations within 24 hours, with $14.37 million attributed to long positions and $7.01 million to shorts, according to Coinglass. The significant liquidation volume indicates heightened trading activity and potential volatility, but it also reflects strong investor interest in XRP as traders take positions in anticipation of price swings.
Overall, XRP is exhibiting promising signs of a sustained upward movement, driven by robust open interest and a favorable technical setup. Should it maintain the current momentum and overcome the resistance levels ahead, XRP could witness a remarkable 50% rally, capturing investor interest and potentially redefining its trajectory in the cryptocurrency market.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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