According to data acquired from Binance, XRP sellers have increased selling pressure. As a counter-response, buyers are also absorbing intense sales—a pattern denoting silent XRP accumulation , interpreted by market experts as a potential “early sign of a bullish breakout.” Market experts at CryptoQuant observed that Binance futures data depict active speculation for XRP, a trend poised to set the stage for a strong move. The month kicked off with the Open Interest rate hitting an all-time high of $1.5 billion, after which a swift decline to $530 million followed, resulting in the washing off of leveraged positions. With Open interest making yet another upclimb, experts are convinced that trader interest has been renewed, although this also means that volatility is right around the corner. Furthermore, when the funding rate, a metric that puts market bias into perspective, turned negative during a correction, it displayed excess short positioning, which opened the pathway for a short squeeze, as the analyst noted. While the funding rate is presently neutral, indicating that long and short positions are equal, CryptoQuant’s market expert explained that short positions are increasing, while funding is decreasing. This has resulted in an upward push for XRP, further signaling that a “mild squeeze” is in play. Breaking down the potential bullish signal recently spotted in the XRP market, the analyst wrote the following; “The Taker Buy/Sell Ratio on Binance is 0.91, showing strong market selling. Retail traders appear to be shorting aggressively. If this pressure continues but price holds, absorption is likely taking place — a potential bullish sign.” The simultaneous rise in Open interest and XRP price signals the return of market speculation. Meanwhile, neutral funding suggests that market players are somewhat indecisive. Taker sell pressure and stability in XRP’s price further indicate that sellers are most likely being absorbed now. With XRP sustaining momentum above the $2 price mark, and 24-hour gains sitting at 3.80%, the altcoin is trading at a press time price of $2.58, inching closer to its 72-hour high of $2.63.
