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Crypto analyst Cryptoinsightuk recently shared his predictions about the future movements of XRP.
In his analysis, Cryptoinsightuk highlighted a significant increase in open interest (OI) and also mentioned a break above the declining trend line. He also pointed out the potential rise in XRP in the near future, including a bullish divergence.
Increase in Open Interest (OI) Indicates Large Short Positions
One of the notable indicators highlighted by Cryptoinsightuk was the significant increase in OI following the news of fake XRP ETF filings in recent days.
OI represents the total number of outstanding contracts for a specific cryptocurrency, and sudden increases in OI often indicate increased market activity and speculation-related transactions.
The rapid increase of over $100 million in OI for XRP suggests that many investors have created short positions and have executed trades based on the expectation of a price decline.
Bullish Signal
Another significant factor highlighted by Cryptoinsightuk is the recent break above the declining trend line. A move above this trend line is generally considered a bullish signal, indicating a reversal of the downward trend.
This break in XRP could trigger a series of stop-loss orders as traders with sell orders in the lower region of the trend line try to exit their positions and create more buying pressure in the market.
Cryptoinsightuk also mentioned the bullish divergence to support the bullish outlook. Bullish divergence is defined as a technical indicator that occurs when the price of an asset is decreasing while the Relative Strength Index (RSI) reaches a higher level.
When this divergence occurs, it generally indicates a loss of momentum in the downward trend and suggests a potential reversal of the upward trend to investors.
Regarding XRP, the mentioned bullish divergence indicates that the recent price drop may be deeper than expected and that a recovery could occur.
In his analysis, Cryptoinsightuk identified a price range of $0.89 to $1.35 for XRP. This range indicates a significant potential for price appreciation based on the factors analyzed.
Furthermore, according to the analyst, considering the overwhelming presence of short positions in leveraged trading, a short price squeeze may be inevitable.
