XRP sales in Binance are being strongly absorbed

The third cryptocurrency of greater capitalization, XRP, closed its fifth consecutive week with positive return. This continuity marks a consolidation of the impulse, which offers a good sign for its price, while its speculative market begins to reactivate.

According to Binance data (the world’s largest cryptocurrency exchange) shown by the Cryptoquant explorer, the open interest – which measures the capital in future asset contracts – of XRP is increasing consistently for a month.

Until then, XRP’s open interest remained in a fall after reaching a historical maximum of 1.5 billion dollars (USD) at the end of last year.

This It suggests a renewed appetite from traders to position themselves in this market and possibly a greater price volatility aheadwarns the analyst and trader, Boris Vale.

This can be seen in the following graph:

The financing rate – indicator that reveals the bias of the operators in future contracts – remains in neutral terrain, reflecting an apparent balance between bullish and bassist bets. This reflects an improvement in the feeling of the market, since it was negative before the price rebound.

Meanwhile, the radius of Taker Buy/Sell In Binance, which measures who takes the initiative in buyers and vendors operations, is in values ​​below 1, which reflects a strong sale pressure in the market, as seen below. However, this is not generating a negative impact on the price.

“If this pressure continues but the price is maintained, an absorption is likely, a potentially bullish signal,” says the analyst. In other words, it would mean that general demand would be more solid than the sale.

For the specialist, XRP data in Binance shows a market where Aggressive sale is finding strong absorption. “This silent accumulation could be the early sign of an upward takeoff,” he says.

The technical analysis supports the possibility of a bullish breakdown

In addition to derivative market data, The technical analysis of the XRP price chart shows the formation of a positive figure: A bullish flag.

This pattern occurs when an asset experiences a strong ascending movement, followed by a price compression stage. The maximum and minimums narrow until they converge at a point, generating a triangle with the tip to the right.

This type of figure, that the price of XRP seems to be forming from the historical maximum of USD 3,4 that it reached in January, It usually completes with a bullish movement. This could mean a rise in this cryptocurrency at new record prices if this pattern is completed.

The increase from XRP to the USD 3,4 exceeded what until then was a record, the USD 3,3, a level that had reached seven years ago. Therefore, it is expected that, before a sustained bullish trend, the market seeks to recover such a price zone.

The rise to the new record was motivated by the expectations that the SEC, US regulatory of the stock market, left its demand against Ripple, the XRP issuing company, as it effectively happened with the return of Donald Trump to the White House. The president said to end the litigation and policies that hinder the development of cryptocurrency industry.

XRP’s impulse occurs in a broader context of risk appetite

XRP’s recent recovery was corrected with US actions and cryptocurrencies, after the decalmous of the “war” of import tariffs established Trump. With the pause of these measures, the advances of international negotiations and the achievement of the first agreements, the markets gained impulse.

The suspension of these levies temporarily eliminated fears about an inflationary rebound and a possible recession in the United States economy. As a result, the appetite for risk assets such as cryptocurrencies was reactivated.

In addition, Trump publicly stated: “They better leave and buy actions now.” This phrase strengthened optimism in stock markets, and by extension, also in cryptocurrencies.

Also, the acceleration of the last week responded to the decision of the Federal Reserve to keep interest rates unchangedwithout adopting a more restrictive tone towards the future. This kept the expectations that the two rates cuts projected by the Central Bank for this year are completed.

Therefore, if the macroeconomic situation continues to improve, XRP could benefit. Otherwise, its current rebound could lose impulse, so it is crucial to consider the risks in this scenario.