Analyst CryptoInsightUK believes XRP could quickly skyrocket to the $0.89 and $1.35 range after witnessing an inflow of over $100 million in open interest (OI) on Nov. 14.
The market watcher disclosed this in a follow-up analysis on X. He called attention to the distinctive price movements of XRP, compared to other charts he had highlighted in an earlier report.
$100M in Open Interest
The analyst noted a significant development with over $100 million in open interest (OI) injected into the market during the price spike witnessed on Nov. 14 on the back of the reports of a fake BlackRock XRP ETF filing. Recall that XRP immediately corrected the gains of that day.
Despite the subsequent decline in price, the OI remained relatively stable, hinting at substantial short positions on XRP. Interestingly, XRP’s OI remains above $464 million as of press time despite a 7% drop over the past 24 hours.
Moreover, CryptoInsightUK shared a 4-hour chart which reveals that XRP has continued to trade below a descending trendline that has persisted since it dropped from $0.73 on Nov. 6.
CryptoInsightUK emphasized the importance of XRP breaking above the descending trendline, suggesting it could trigger a massive move as market participants rush to cover or close their short positions.
For traders to cover their short positions, they would need to purchase more XRP, ultimately leading to a surge in buying activity. This, in turn, could trigger stop-loss orders, propelling XRP on a swift upward trajectory.
XRP Set to Hit $1.35
In addition, the analyst identified a bullish divergence on the 4-hour chart, noting that XRP has printed a higher low, while the Relative Strength Index (RSI) marked an equal low.
This signal, coupled with the prevailing short positions, fueled CryptoInsightUK’s prediction that XRP is poised to surge to a range between $0.89 and $1.35.
The analyst admitted a miscalculation in predicting the exact date of the rally to this target, but expressed unwavering confidence in the inevitability of the surge, citing the prevalence of leveraged shorts that need to be liquidated.
Notably, another analyst interjected, suggesting a potential dip below $0.60 before witnessing the projected uptrend. The analyst referenced historical precedence, noting that the appearance of long-wick, red candles rarely signifies the market bottom for XRP.
However, the analyst underscored a critical aspect often overlooked by market participants – the speed at which XRP could move upwards once the push begins, given the substantial number of existing short positions. Meanwhile, XRP is down 3.6% over the past 24 hours, currently trading for $0.6131.