XRP Continues Recovery, Bullish Signals Strengthen

XRP has been steadily recovering from its recent lows, recording consistent gains over the past few days. This upward trend has pushed the token above the descending parallel channel, which had kept its price in a bearish phase since January 16.

In the last 24 hours, XRP surged by 6%, fueled by growing demand that could build strong momentum to reclaim the US$3 level.

XRP Breakout: Bullish Reversal Signals Rising Demand

XRP’s 6% rebound in a single day has lifted its price out of the descending parallel channel, which had dictated its downward trajectory for the past two months. This bearish pattern forms when an asset consistently creates lower highs and lower lows within two declining trendlines.

If the price breaks above the upper trendline of this channel, it signals a bullish reversal, indicating a shift in market sentiment towards XRP and potential further upside as long as demand remains strong.

Additionally, the Chaikin Money Flow (CMF) indicator reflects increasing capital inflows into the XRP spot market. At the time of writing, CMF stands at 0.08, suggesting continued buying pressure.

A positive CMF value like this indicates that accumulation is outpacing distribution, reinforcing the likelihood of further price appreciation in the coming days.

Open Interest on the Rise, Market Participation Strengthens

The rising open interest (OI) in the futures market also suggests growing demand for XRP. Currently, OI stands at US$1.24 billion, up 20% in the past five days, while XRP’s price has climbed 13%.

Open interest refers to the total number of unsettled derivative contracts, including futures and options.

When an asset’s price rises in tandem with increasing open interest, it signals strong market participation. This confirms XRP’s uptrend, as new capital continues to flow into the market to support higher prices.

XRP Bulls in Control—Will Profit-Taking Begin?

XRP’s breakout above its descending parallel channel has solidified its recent price rally. If bullish momentum persists and demand continues to grow, XRP could extend its gains and approach its all-time high (ATH) of US$3.40.

However, if profit-taking sets in, XRP risks losing its recent gains and slipping back into the descending parallel channel. In this scenario, the altcoin could trade around US$2.13.