Ripple’s XRP has finally broken through the $1 barrier, a milestone it hasn’t reached since November 2021. This move signals renewed optimism in the crypto market, driven by rising demand and strong bullish sentiment.
XRP Surges Past $1 After Nearly Three Years
Earlier today, XRP was trading at around $0.85. However, a bullish engulfing candle on the charts pushed the price to $1.02, marking the first time it has hit this level since the 2021 bull run.
Several factors have fueled this surge. One major catalyst is growing speculation around a potential XRP ETF, sparking investor interest. Additionally, there has been a noticeable uptick in institutional demand, supported by XRP’s recent listing on Robinhood. These events have bolstered confidence in the altcoin, particularly in the U.S. market.
Another factor driving the rally is speculation about the resignation of SEC Chair Gary Gensler, who has been at the forefront of legal battles against Ripple. This rumor has added positive momentum to XRP’s price surge.
Rising Open Interest Drives XRP’s Price Action
On-chain data shows a spike in Open Interest (OI), contributing significantly to XRP’s recent momentum. According to Coinglass, XRP’s OI surpassed $1 billion in August 2023 following Ripple’s partial legal win against the U.S. SEC. High OI often indicates increased market liquidity, which can amplify price movements.
If OI continues to rise, it may support further price increases, as it suggests strong market participation and heightened speculative activity.
XRP Price Prediction: Overbought, But Bulls Stay in Control
XRP’s rally began in early November when the bulls defended the $0.50 support level. Since then, the price has surged by over 100%. However, the Relative Strength Index (RSI) on the 3-day chart indicates that XRP is now in overbought territory. Typically, an RSI above 70 signals that an asset may be overextended and could face a pullback.
Despite this, the Bull Bear Power (BBP) indicator shows that bullish forces remain dominant. The BBP currently forms a large green histogram, signaling strong buyer momentum. If this momentum continues, XRP could aim for the next resistance level at $1.40.
However, a shift in market sentiment could lead to a correction, with support levels at $0.76 and potentially dropping to $0.64 if bearish pressure increases.
Can XRP Hold Above $1?
XRP’s breakout past $1 has reignited excitement among investors, but the question remains: can it sustain this rally? With strong on-chain metrics and rising market interest, the potential for continued gains is high. However, overbought indicators suggest caution as the token may face resistance in the coming days.
