New All-Time High Sets Stage for Potential Upside Despite Short-Term Pullback
XRP, the digital asset linked to Ripple, has captured the crypto market’s attention, recently surging to a new all-time high of $3,66. While a subsequent pullback saw its price ease to around $3,47 this Tuesday, market observers are keenly watching for signs of its next move. This slight dip follows a remarkable rally from its June lows of $1,90, yet a deeper dive into market dynamics suggests that XRP’s underlying bullish structure remains robust, potentially hinting at further price discovery.
Market Heats Up, Triggers Liquidations
The recent rally, while impressive, appears to have led to somewhat overheated market conditions. Technical indicators, such as the Relative Strength Index (RSI), climbed to 81, typically signaling that an asset may be “overbought” and ripe for a correction. This cooling-off period has triggered significant liquidations across the derivatives market, with approximately $24.000.000 wiped out from leveraged positions in the last 24 hours. Long position holders, who bet on price increases, bore the brunt of this, accounting for $18.270.000 in losses compared to $5.290.000 from short positions. This surge in selling pressure, evidenced by a trading volume of $20.220.000.000, indicates a clearing out of over-leveraged traders.
Retail Activity Remains Poised, Open Interest Holds Strong
Despite the volatility and liquidations, key metrics suggest that XRP’s momentum might not be exhausted. The XRP futures Open Interest (OI) has surprisingly surged to $10.940.000.000. Open Interest, which reflects the total number of outstanding futures and options contracts, indicates that traders are maintaining significant exposure and are not yet abandoning their bullish bets. This persistence in OI hints at continued confidence in XRP’s ability to not only recover but also surpass its recent peak.
Furthermore, an intriguing aspect is the “Spot Retail Activity Through Trading Frequency Surge” metric from CryptoQuant, which measures the engagement level of smaller, individual investors. This indicator shows that retail activity remains neutral. In a typical market, a major price surge followed by a slight correction might see retail investors pulling back significantly. However, XRP’s neutral retail activity suggests that these investors are still actively participating or are poised to enter the market, indicating sustained speculative demand. This “quiet” retail presence could be the catalyst for the next leg of the rally, as it implies there’s still ample buying power waiting for the opportune moment.
Technical Outlook: Bullish Structure Intact
From a technical perspective, XRP’s chart shows a resilient bullish structure. The token is currently consolidating between its all-time high of $3,66 and the previous record high of $3,40. While the RSI’s slight decline from its peak suggests a reduction in immediate buying pressure, the overall trend remains positive.
Crucially, the daily chart displays upward-sloping moving averages, reinforcing the bullish sentiment. A “Golden Cross” pattern, which occurred on July 13 when the 50-day Exponential Moving Average (EMA) crossed above the 100-day EMA, further strengthens this outlook. A Golden Cross is widely regarded as a strong bullish signal, indicating that short-term price momentum is accelerating and could lead to sustained upward movement.
XRP/USDT daily chart
Should XRP’s price dip further, key support levels to watch include $3,00, a previous resistance point, and potentially the 50-day EMA at $2,60. However, the prevailing technical signals, combined with the underlying resilience in Open Interest and retail activity, suggest that XRP’s recent pullback could merely be a temporary consolidation phase before it embarks on a fresh price discovery journey.
Disclaimer: This article is for informational purposes only and should not be taken as financial advice. Always conduct thorough research before making investment decisions.
