Cryptocurrency analysis company CryptoQuant drew attention to the XRP market in its latest assessment.
According to the company’s analysis based on Binance futures data, speculative movements in XRP are increasing again. It was stated that this situation could be a harbinger of a strong price movement.
XRP’s open interest volume once reached an all-time high of $1.5 billion. However, this figure has since fallen to $530 million, causing leveraged positions to be liquidated. According to CryptoQuant, open interest volume has been increasing again in recent days, indicating a revival of trader interest and the market could see higher volatility.
Related News
BREAKING: US President Donald Trump Makes Harsh Comments About the Fed and Jerome Powell Again – Here Are the Details
Another important indicator in the report, the funding rate, is critical in terms of analyzing the direction in the market. The funding rate, which turned negative during the correction process, indicated that excessive short positions were opened and a potential short squeeze was prepared. Currently, the rate is at a neutral level, which reveals a balance between buyers and sellers. However, the decrease in the funding rate while short positions are increasing behind the scenes suggests that there is upward pressure on the XRP price and a mild short squeeze is ongoing.
On the other hand, according to analysts, the Taker Buy/Sell ratio on Binance is at 0.91. This shows that there is strong selling pressure in the market. CryptoQuant states that retail investors are aggressively opening short positions, while the price remains strong and the selling pressure is absorbed in the market. This situation is considered as a preliminary signal of a possible rise.
*This is not investment advice.
