As illustrated in the chart above, XRP open interest has surged from $334.1 million to $427.9 million between August 5 and August 18, reflecting 28.07% surge.

Meanwhile, during this same period, XRP’s price increased by 35%, outpacing the growth in open interest.

This trend suggests that the current XRP rally is driven more by spot purchases rather than speculative trading activity. A rally propelled by spot buying is often more sustainable, as it indicates genuine demand for the asset, which can provide strong support and reduce the likelihood of major corrections.

The increase in open interest also aligns with the narrative that the decline in BTC.D is due to investors spot-buying altcoins like XRP in anticipation of an expected rate cut. If this scenario plays out, XRP could extend its 6% weekend rally in the days ahead.

XRP Price Forecast: $0.61 Roadblock Ahead

Looking ahead, XRP price faces a potential roadblock at the $0.61 resistance level. The Parabolic SAR and Donchian Channels on the daily chart suggest a cautious outlook despite the recent rally.

The Parabolic SAR, which is currently positioned below the price, indicates that the uptrend remains intact. However, the Donchian Channels suggest that the price is nearing the upper boundary of its recent range, typically a signal that the asset may face resistance.