XRP has continued its recovery from recent lows, posting steady gains over the past few days. The upward trend has now pushed the token above the descending parallel channel that had kept its price bearish since January 16.
In the last 24 hours, XRP has climbed 6%, as a gradual increase in demand could create strong momentum to reclaim $3.
XRP Breaks Out: Bullish Reversal Signals Strengthening Demand
XRP’s 6% rebound in the past day has lifted its price above the descending parallel channel, which had been driving its decline since January 16. This bearish pattern occurs when an asset forms lower highs and lower lows within two downward-sloping parallel trendlines.
If the price breaks above the channel’s upper trendline, it indicates a reversal or the start of a bullish trend. This signals a bullish shift in market sentiment toward XRP and a possible opportunity for upward momentum if demand is sustained.
Also, the altcoin’s rising Chaikin Money Flow (CMF) indicates capital inflow into the XRP spot markets. At press time, this indicator, which tracks how money comes in and out of an asset, is above zero at 0.08.
A positive CMF reading like this indicates mild buying pressure, suggesting that XRP accumulation is slightly stronger than distribution. If this trend continues, it could drive up XRP’s value over the next few days.
Furthermore, the token’s rising open interest in its futures market reflects the resurgence in demand for XRP. This is currently at $1.24 billion, climbing 20% over the past five days, during which time XRP’s price has risen by 13%.
Open interest refers to the total number of outstanding derivative contracts, such as futures or options, that have not been settled.
As observed with XRP, when an asset’s price climbs with open interest, it indicates strong market participation. It confirms the strength of XRP’s uptrend, as new money is entering the market to support higher prices.
XRP Bulls in Control—Will Profit-Taking Start?
XRP’s successful break above its descending parallel channel strongly confirms its price rally of the past few days. If bullish pressure persists and XRP continues to record new demand, it could extend its current gain and climb toward its all-time high of $3.40.
On the other hand, if profit-taking resumes, XRP could lose its recent gains and fall back within the descending parallel channel. In this scenario, the altcoin could trade at $2.13.
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Disclaimer
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