XRP struggles near $0.7440, could still sustain rally after Robinhood listing
- Ripple's XRP open interest has declined by over 10% in the past 24 hours.
- Robinhood's listing of XRP could serve as a catalyst for renewed demand.
- XRP continues to struggle near historically strong resistance after sustaining another rejection at $0.7440.
Ripple's XRP is trading near $0.6900, down nearly 3% on Wednesday, as declining open interest could extend its price correction. However, other on-chain metrics point to a long-term bullish setup.
XRP could continue rally despite decline in open interest
XRP's open interest declined over 10% in the past 24 hours following a reduction in investor interest. The OI decreased from $1.2 billion on Tuesday to $1.09 billion on Wednesday.
Open interest is the total number of outstanding contracts in a derivatives market. If XRP's OI continues declining, it could extend its price correction.
XRP Open Interest | Coinglass
However, Robinhood relisting XRP on its trading platform could spark new demand for the altcoin. The trading exchange recently announced it relisted the token due to high community demand for the coin in the past month.
Additionally, Ripple CEO Brad Garlinghouse allegedly met with President-elect Donald Trump and members of his administration to discuss a potential regulatory framework for cryptocurrencies.
Meanwhile, active addresses on the XRP Ledger have also grown, per CryptoQuant's data, indicating strengthening bullish momentum.
XRP Active Addresses | CryptoQuant
Ripple Price Forecast: XRP struggles near historically strong $0.7440 resistance
Coinglass data shows that XRP is down 3% following $14.73 million in liquidations in the past 24 hours. Liquidated long and short positions accounted for $11.16 million and $3.58 million, respectively.
On the daily chart, XRP saw a rejection at the resistance level near $0.7440 for the second time in two days. This resistance has held since July 2023, and the remittance-based token has seen a rejection near it five times in the past year.
XRP/USDT daily chart
With the rejection, XRP could decline to the support level near $0.5700. If XRP bounces off this level, it could rally upward to retest $0.7440 again. A move above this level could see XRP rally toward $0.8547.
The Relative Strength Index (RSI) is in the oversold region and trending downward, indicating a potential price correction.
A daily candlestick close below $0.5700 will invalidate the thesis.
Ripple FAQs
Ripple is a payments company that specializes in cross-border remittance. The company does this by leveraging blockchain technology. RippleNet is a network used for payments transfer created by Ripple Labs Inc. and is open to financial institutions worldwide. The company also leverages the XRP token.
XRP is the native token of the decentralized blockchain XRPLedger. The token is used by Ripple Labs to facilitate transactions on the XRPLedger, helping financial institutions transfer value in a borderless manner. XRP therefore facilitates trustless and instant payments on the XRPLedger chain, helping financial firms save on the cost of transacting worldwide.
XRPLedger is based on a distributed ledger technology and the blockchain using XRP to power transactions. The ledger is different from other blockchains as it has a built-in inflammatory protocol that helps fight spam and distributed denial-of-service (DDOS) attacks. The XRPL is maintained by a peer-to-peer network known as the global XRP Ledger community.
XRP uses the interledger standard. This is a blockchain protocol that aids payments across different networks. For instance, XRP’s blockchain can connect the ledgers of two or more banks. This effectively removes intermediaries and the need for centralization in the system. XRP acts as the native token of the XRPLedger blockchain engineered by Jed McCaleb, Arthur Britto and David Schwartz.
Author
Michael Ebiekutan
FXStreet
With a deep passion for web3 technology, he's collaborated with industry-leading brands like Mara, ITAK, and FXStreet in delivering groundbreaking reports on web3's transformative potential across diverse sectors. In addi
