Famed crypto analyst Will Taylor, who goes by the name Cryptoinsightsuk on X, believes that Ripple (XRP) prices could skyrocket to $0.89 and $1.35 on the back of growing market interest in the cryptocurrency.
XRP has experienced a small decline over the past couple of days, which coincided with the consolidation of the entire crypto market following four weeks of consecutive price increases. Despite making gains over the last 24 hours, Ripple is down over 8% from its valuation seven days ago.
Despite the downturn, Taylor is optimistic about a price surge for XRP after he pointed out two key data metrics – open interest and bullish divergence with the RSI – that are offering much-needed support for the token.
Open Interest On XRP Futures Crosses $100 Million Following Rumors Of BlackRock’s ETF Filing
In an X post on November 17, the analyst highlighted that after reports circulated that said Wall Street giant BlackRock was preparing to file for XRP-backed ETF, more than $100 million worth of open interest on futures contracts linked to the token was added to the ecosystem.
Ripple also experienced a significant price jump, which saw XRP rise by 16% to hit $0.75.
Cryptoinsightsuk noted that despite XRP losing its latest rally after the report was debunked, the amount of open interest in the cryptocurrency has stayed relatively the same, or “flat” in his own words. According to him, the amount of open interest in futures contracts remaining the same after the token’s price has gone up signifies that there are “HUGE” short trade positions at play “right now”.
Open interest on XRP remains above $460 million despite a 7% drop over the past 24 hours.
” The prominent trader also displayed a four-hour price chart that showed formations of lower highs and lower lows for XRP. As per the chart, the latest price action was a bounce up and it is now closing in on the descending upper trendline formed by the lower highs. ”
He explained that a break above the descending trendline for XRP could trigger a price uptrend. According to Taylor, the event might encourage traders to cover their open short positions or close them out by placing buy orders. The analyst says this could lead to a more aggressive breakout for Ripple in the market.
To cover their short positions, traders would need to purchase more XRP, which could ultimately lead to a surge in buying activity that could in turn trigger stop-loss orders.
Bullish Divergence In RSI Indicates That Bulls Are Ready To Take Control Of The XRP Market
Recently, CryptoinsightsUK noticed the formation of a higher low in XRP price that is creating a bullish divergence in its Relative Strength Index (RSI) overbought/oversold indicator. He claims the bullish divergence demonstrates that bears are starting to lose control of the Ripple market and bulls are poised to take over.
He expects XRP to “get sent” to his target range of between $0.89 and $1.35 if the projection comes true.
At the same time, crypto lawyer John Deaton suggested that XRP could dip below the $0.60 mark before witnessing an uptrend. He noted that the appearance of long, red candles rarely signifies the market bottom for XRP, with reference to the token’s historic price charts.
In response, Cryptoinsightsuk acknowledged the possibility of a dip in Bitcoin prices that could retest the lows for the rest of the crypto market, including XRP. He pointed out that Ripple could skyrocket to the upside once the bull run continues, due to the sheer number of short positions that exist.
Meanwhile, XRP is trading at $0.61 – up 1.1% over the past 24 hours.