XRP has struggled to gain upward momentum over the last few weeks, keeping the altcoin from registering any significant rise in price. 

Despite this, traders remain optimistic, as seen in their recent behavior, which reflects growing confidence in a potential recovery.

XRP Traders Eye Opportunities Amid Price Recovery

XRP’s market sentiment has seen a boost, with open interest increasing significantly by $1.6 billion this week. Rising from $2.71 billion to $4.30 billion, this growth highlights the active positioning of traders in anticipation of a potential price recovery. The increased open interest reflects heightened engagement and a renewed interest in leveraging XRP’s price fluctuations.

Additionally, the funding rate for XRP remains positive, further indicating bullish sentiment among traders. This aligns with their optimistic outlook, suggesting that many are prepared to capitalize on any upward price movement.

On-chain transaction volume for XRP, however, paints a more cautious picture. A significant portion of the transaction volume has been loss-bearing since the start of the year. This persistent trend reflects that many transactions are occurring at prices below the acquisition cost, which could dampen long-term investor sentiment if sustained.

If loss-dominated transaction volume continues, it risks eroding the optimism currently seen among traders. Such a scenario could trigger a pullback, reducing momentum and potentially impacting XRP’s ability to break through key resistance levels.

XRP Price Prediction: Rangebound Future

Go to Source to See Full Article
Author: Aaryamann Shrivastava