On Wednesday, November 20, Ripple’s token XRP is seen trading at $1.11, continuing its position in the top crypto performers list based on market capitalization. The altcoin has gained more than 50% over the last 7 days and is likely to surge further.
The remittance-based token is expected to hit the $1.96 mark as per its technical indicators and on-chain data of the bullish sentiment continues.
XRP reached $1 as crypto investors took out 250 million tokens from Upbit, a Korean crypto exchange which happens to be the largest XRP reserve in the world. Due to this withdrawal, Upbit’s reserve hit a four-month low as its XRP holdings went down to 6.3 billion.
A similar thing also happened in crypto exchange Binance whose XRP reserve went down after it peaked last week on November 12. This suggests a buying pressure for the altcoin which is pushing the XRP price towards new heights.
XRP futures open interest also vindicated this bullish prediction as the OI reached an all-time high of $1.98 billion on November 17 before it went down to $1.84 billion today. Open Interest is the measure of outstanding contracts in a derivatives market
The Estimated Leverage Ratio (ELR) of the digital asset is also pointing towards an upward trend as it reached 0.17 on November 16. This marks the highest RLR for XRP since January this year. However, this could mean a price correction is coming soon as high ELRs often lead to that.
This ratio is indicative of the leverage used by traders and how much can be obtained by dividing an exchange’s OI by its coin reserve. An increasing ELR means crypto investors are going for high-leverage risk in the derivatives market.
The futures liquidations of Ripple also rose to $9.62 million during this time, with long and short positions making up $6.23 million and $3.38 million liquidations respectively.
The weekly XRP price chart shows a rounded bottom pattern after the coin gained more than 100% in the last 2 weeks.
Analysts are predicting that the altcoin will rally to the $1.96 resistance level if it is able to hold above the 3-year resistance of $1.35. In case, XRP is able to break the $1.96 barrier then it will rally to $2. It would be the first time in 6 years since that has happened.
The altcoin's Relative Strength Index (RSI) is currently running on the oversold region which means a price correction might happen soon while its Awesome Oscillator (AO) has showcased consecutive green bars above the neutral level, indicating a bullish trend. XRP could go down to $0.38 if a daily candlestick below $0.74 emerges as it would invalidate the bullish momentum.
At the time of writing on November 20, XRP was up 1.64% to trade at $1.11 while trading volume decreased by 25.85% to reach $5.52 billion and the market cap rose to $62.87 billion.