XRP Up 12% After Triangle Formation

XRP has risen 12 percent in the past 24 hours, leading the gains among crypto giants, outperforming bitcoin (BTC) and the CoinDesk 20 (CD20) index.

The token has gained 5% since early morning hours, taking its seven-day gain to nearly 40% and becoming the best-performing major despite positive regulatory developments for ether (ETH) and demand for meme coins.

“XRP has been outperforming the market for a long time, but sentiment in the crypto is reversing,” said Alex Kuptsikevich, senior market analyst at FxPro. “With the recent jump, prices have risen to 60 cents, the highest level since April. This means it is trying to return to the uptrend of the past two years.”

However, XRP may need a rest after the climb, Kuptsikevich added, adding that the high is appropriate as we saw prolonged consolidations in November-December and March.

The token’s gains began last week when traditional futures trading venues CME and CF Benchmarks announced the launch of their XRP indices and benchmarks, creating a triangle pattern on long-term price charts that some popular traders say could support bullish action in the coming weeks.

Crypto trader @MichaelXBT: “I’ve never seen a 7-year bullish triangle pattern before. We could be about to witness one of the most significant breakouts in crypto history.”

The triangle pattern is a popular technical analysis chart formation that helps traders understand market sentiment and spot emerging trends. It occurs when the price of an asset trades within a narrow range following an uptrend or downtrend.

Analysts say that moving away from the triangle formation, especially in high volumes, will lead to an uptrend.

Open interest in XRP futures has more than doubled in the past seven days, suggesting that price volatility is expected in the future.

CoinGlass data shows that XRP futures have surged from $420 million on July 9 to over $780 million, reaching levels last seen in mid-April. Trading volumes for the token have increased from $2 billion to $3.6 billion during that period, according to CoinGecko data.

According to Coinalyze data, over 60 percent of XRP futures bets opened in the last 24 hours were long positions. The increase in open interest as well as trading volumes suggests that new money is entering the market and investors are expecting XRP to rise further.