Bullish narratives emerge as Ripple (XRP) gains 40% weekly, trader sentiment rises

XRP has been one of the best-performing crypto assets amid the market’s recovery this week after briefly reaching $0.62, a level last seen in March.

XRP has shown a remarkable recovery after posting gains of over 40% last week, driven by a rally in the broader market. In the last day alone, the sixth-largest crypto by market capitalization rose nearly 15%, indicating strong investor confidence and increased trading activity.

New ATH for XRP?

According to the latest analysis by on-chain analytics platform Santiment, trader sentiment closely mirrored recent price movements, with XRP leading the market’s bullish narratives.

One expert’s analysis suggests that XRP could be on the verge of a “historic breakout,” with the potential to set a new market precedent. In a tweet, crypto trader under the pseudonym Crypto Michael noted that XRP has been forming a bullish pennant pattern for an astonishing seven years. This phenomenon is rarely seen, and such a prolonged period of consolidation could lead to a major breakout.

Another crypto analyst noted a pivotal moment for XRP, noting that it has broken through the resistance level of the Relative Strength Index (RSI), a key indicator that previously started an explosive rise in 2017. This technical break also suggests that the crypto asset could be poised for another major upward move.

Following the recent price action, many traders and investors are closely watching XRP’s next moves, anticipating the possibility of another notable rally. Meanwhile, a crypto commentator “Amonyx” believes that the crypto asset will reach a new ATH this cycle.

Most XRP futures bets are long

Data from Coinalyze revealed that more than 61% of XRP futures bets placed in the last 24 hours are long positions compared to almost 39% of short positions, which predict price gains.

Open interest in the XRP futures tracker has increased significantly and currently sits above $753.65 million. Trading volume was also up 45.41% to $3.52 billion at the time of writing. Therefore, the combined increase in OI and trading volume essentially pointed to new money entering the market, anticipating an increase in the value of XRP.

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