XRP’s Taker-Buy-Sell Ratio and rising open interest indicate strong speculative demand from futures traders.
Spot traders are showing significant sell-side pressure and keeping XRP within a descending parallel channel.
XRP is currently struggling to hold the $1.41 resistance. If bullish momentum continues, it could break this level and rise to $1.61, but persistent selloffs in the spot market could push the price down to $1.11.
Since January 6, Ripple’s XRP has traded within a descending parallel channel, wiping out nearly 50% of its market value.
This bearish pattern emerges when an asset’s price consistently makes lower highs and lower lows, creating two parallel trendlines that slope downward.
It suggests a sustained downtrend, driven by weakening investor confidence and low buying pressure.
However, despite escalating geopolitical tensions and a general pivot toward safe-haven assets like gold, a segment of the derivatives market is betting on a price uptick for XRP.
XRP Futures Traders Defy Market Slump
An assessment of XRP’s derivatives market suggests that its futures traders are unfazed by the broader market’s lackluster performance and are taking positions in anticipation of a near-termprice rally.
A key indicator of this bullish sentiment is the coin’s Taker-Buy-Sell Ratio, which now sits at a seven-day high of 1.014.
An asset’s taker buy-sell ratio measures the ratio of buy to sell volumes in its futures market. Values above one indicate more buy than sell volume, while values below one suggest that more futures traders are selling their holdings.
At 1.014, XRP’s Taker-Buy-Sell Ratio signals that while the general sentiment across the crypto market has been dampened by the tensions in the Middle East, futures traders continue to absorb sell-side liquidity, suggesting a high-conviction bet on a near-term recovery.
Furthermore, the token’s rising open interest, even as its price remains stuck in a narrow range, confirms this bullish projection.
Per CryptoQuant’s data, XRP’s open interest stands at a five-day high of $826 million, indicating an influx of new capital and a rise in speculative demand despite the sideways price action.
While XRP futures traders remain bullish, readings from the token’s daily chart show that spot traders do not share the same sentiment.
As of this writing, the coin’s Aroon Down Line is at 78.57%, while the Aroon Up Line is at 0%, indicating significant sell-side pressure in the XRP spot markets.
The Aroon indicator measures the strength and direction of a trend. It consists of two lines: the Aroon Up, which tracks the time since the last high, and the Aroon Down, which tracks the time since the previous low.
When an asset’s Aroon Down is near 100 while its Aroon Up is simultaneously near 0, it means new lows are being made frequently, with sellers firmly in control. This puts XRP at risk of maintaining the descending parallel channel in the meantime.
Moreso, the token’s negative Balance of Power (BoP) highlights the bearish tilt in market sentiment toward the asset. At press time, this key momentum indicator is at -0.86.
The BoP measures the strength of buyers versus sellers in a given market period. It oscillates between +1 and -1, where positive readings indicate buyers dominate and push prices higher, while negative readings show that sellers have control.
For XRP, the current setup indicates that bearish sentiment outweighs bullish sentiment among spot traders and that sellers are driving the market’s pace.
XRP Bulls Eye Crucial Breakout
XRP trades at $1.34 at press time, resting below the upper line of its descending parallel channel, which forms resistance at $1.41.
If the bullish momentum among its futures traders holds and general market sentiment improves, XRP could rally past this resistance to touch $1.61.
However, a persistent surge in spot-market selloffs could prevent this from happening. In this scenario, XRP’s price could fall toward the $1.11 support level.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Abiodun Oladokun is a Research Analyst at CCN, where he covers cryptocurrency markets with a focus on on-chain analysis, technical assessments, and emerging trends across decentralized finance (DeFi), real-world assets (RWA), artificial intelligence (AI), decentralized physical infrastructure networks (DePIN), Layer 2s, and meme coins.
Prior to CCN, he served as a Senior On-Chain Analyst at BeInCrypto, producing market reports spanning diverse crypto sectors.
Before that, he conducted technical analysis and market assessments of various altcoins at AMBCrypto, where he also contributed long-form quarterly research papers on DeFi, NFTs, DAOs, and scaling architectures, leveraging on-chain platforms including Messari, Santiment, DefiLlama, and Dune Analytics.
He began his crypto career as a research analyst at SixthSense DAO, developing blockchain forensic tools to trace the history of stolen assets.
Abiodun is a lawyer called to the Nigerian Bar and the founder of Ilé Ijó, a Lagos-based electronic dance music collective.
