Ripple (XRP) is trading close to the $0.70 area after making a blistering start to November 2023.
Derivatives market data shows that capital inflows in XRP Futures contracts grew by a staggering $120 Million within the last two weeks.
After a brief consolidation phase on Tuesday, November 7, on-chain indicators show that the XRP price will likely break down the $0.70 resistance.
Ripple (XRP) price is currently trading around the $0.70 area as the crypto market rallied and entered its second consecutive month. After a consolidation phase, on-chain and technical analytics are flashing signals of another possible leg up.
Crypto Investors Have Moved $100M into XRP Futures Contracts this Month
XRP price made a blistering start to November 2023, rallying 13% over the past week. While XRP whales and institutional investors have grabbed the media attention, derivatives market data shows that Futures Traders are also playing a pivotal role in the XRP price rally.
XRP has attracted additional investments worth $120 million within the last two weeks, according to crypto derivatives market data tracker Coinglass. As depicted in the chart below XRP Open Interest was around $470 million at the close of October 30. However, as of November 8, that figure has sykrocketed to $592 million.
Ripple (XRP) Aggregated Open Interest vs. Price |Source: CoinglassIn the context of futures and options contracts, Open Interest is the total number of outstanding or open positions for a particular asset. It represents the total number of contracts, either long (buy) or short (sell), that exist for a particular crypto asset, financial instrument or derivative at a given point in time.
Typically, when investor bring in fresh capital inflows during a market rally, it suggests that they are increasing confident that the current price trend will continue. Hence, the $100 million increase in XRP Open Interest is a key indicator of growing investor interest and confidence in the market.
If this thesis holds, XRP holders and spot market traders can anticipate more upside in the days ahead.
XRP Price Forecast: Road to $1?
XRP is currently trading at $0.68. Multiple attempts at the $0.70 ,000 in the last 24 hours days appear to have weakened the resistance marginally. Hence XRP looks in prime position to push further toward $1.
In the daily time frame technical analysis, XRP’s current Parabolic Stop and Reverse indicator also confirms this narrative. As seen below, a decisive breakout above the initial resistance at $0.74 could catapult the XRP price rally further toward $1.
XRP Price Forecast, November 8, 2023 | Source: TradingViewThe Parabolic SAR (Stop and Reverse) identifies the $0.63 area as potential reversal point in the ongoing market trend. If the bears attempt to force a downswing, the bulls could mount a support buy wall at that range. This alignment suggests a growing bullish trend.