XRP Price Prediction: Breakout Potential Could Propel XRP to $3.35
- XRP shows clear bullish signals with cup-and-handle pattern.
- Market volume and open interest surge, signaling bullish trend.
- XRP liquidations reflect strong market sentiment and upward momentum.
XRP has recently gained significant attention, as its price suggests a strong upward momentum. The cryptocurrency has reached a price range of $2.50 to $3.00, with a clear breakout potential towards $3.35. This price movement is likely attributed to the development of a cup-and-handle pattern, suggesting further price appreciation.
A Breakout Could Set the Stage for $3.35
XRP shows strong bullish potential as it follows a cup and handle pattern, sparking expectations of a price surge. Analyst Ali Martinez predicts that a breakout could push XRP towards $3.35, after months of steady price consolidation. If XRPs price breaks the current resistance levels, it could trigger a rise toward $3.35.
XRPs market behavior aligns with the cup-and-handle theory which suggests a significant price increase after a consolidation period. This formation often indicates that a breakout will occur once it surpasses the resistance level. The cryptocurrency has maintained consistent upward movement since mid-January. XRPs recent price movement from under $1.50 to over $2.70 attracts more attention from investors.
Open Interest and Funding Rate Surge
XRPs open interest (OI)-weighted funding rate illustrates a strong market activity trend due to increased investor interest. Open interest data shows that investors are heavily involved in XRPs futures contracts, indicating expectations for further price increases. As futures contracts typically attract institutional traders, this indicates that large players are positioning themselves for a potential breakout.
The open interest data also reveals a strong rise in market activity over the past two months, which correlates with XRPs price movement. The funding rate has maintained a positive upward trend which indicates that the market remains bullish in the short term.
Volume and Liquidity Indicators Point to Growing Market Interest
XRPs trading volume has seen a significant increase, which further supports the bullish outlook. The volume surge from early February 2025 coincides with the recent upward price movement. This surge in volume often indicates growing market interest and can contribute to sustained bullish momentum. This growth mirrors the surge in price as it approaches the $3.00 mark, which further increases confidence to traders.
Moreover, the spot inflow and outflow data shows a positive trend, which suggests that more capital is entering the XRP market. A positive netflow indicates increased investor confidence in the asset, contributing to its continued price appreciation .These inflows align with price movements, affirming the bullish outlook for XRP.
Total Liquidations and Market Sentiment
XRP has also witnessed a significant increase in total liquidations for both long and short positions. The total liquidation reveals that the market has experienced sharp liquidations, with a large portion of shorts being cleared. This signals that market participants with bearish positions were forced out as XRPs price surged.
Additionally, the market capitalization of XRP has seen significant growth surpassing $2 billion. This increase in market cap suggests growing investors interest and rise in momentum in the cryptocurrency market.
Read more: https://www.tronweekly.com/xrp-cup-handle-pattern-could-push-it-to-3-35/
Text source: TronWeekly
