Ripple price has bounced back in the past two straight days as investors buy the dip following last week’s partial victory in the United States. The XRP coin rose to a high of $0.80 on Wednesday even as Bitcoin remained stagnant slightly above $30,000.
Ripple open interest jumps
XRP coin price made a spectacular recovery last week after the partial victory by Ripple Labs as we wrote here. The judge ruled that while Ripple Labs broke the law in 2013, the XRP coin was not a financial security.
That declaration was an important one for the cryptocurrency industry since it came a few weeks after the SEC filed major lawsuits against Binance and Coinbase. One of the common allegation was that the companies were offering unregulated securities, including Ripple.
Therefore, there is a likelihood that the SEC will go slow its lawsuits against cryptocurrencies and exchanges.
Meanwhile, XRP price is rising as investors buy the recent dip and as open interest of the currency rise. Data shows that open interest rose to over $1.1 billion in the past 24 hours. This is the highest that the interest has jumped this year. Interest has jumped by over 21% in the past few days.
Open interest refers to the number of unsettled futures contracts in the market. And a higher number is a sign of increased bets of a financial asset. This explains why the XRP price has jumped sharply in the past two days. As expected, most of this open interest is dominated by two exchanges: Binance and Bitget.
XRP price prediction
The daily chart shows that the XRP crypto price jumped sharply last week after the court ruling. It jumped and peaked at $0.9267 and then pulled back as some investors started taking profits. Now, the coin has bounced back as these same investors buy the dip. It remains above the 50-day and 25-day moving average while the Relative Strength Index (RSI) moved to the overbought level.
Therefore, there is a likelihood that the coin will continue rising as buyers target the key resistance level at $0.9267. A move below the support at $0.70 will invalidate the bullish view
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