Key takeaways:
XRP’s potential to rise to new all-time highs is backed by increasing institutional demand and open interest.
Analysts say XRP's price could continue its uptrend to $3.12 and later to $4.50.
XRP ( XRP ) price is up 1.7% in the past 24 hours and 6% in seven days to trade above $3 on Thursday. Market analysts say that this sets the altcoin up for further gains backed by several onchain and technical factors.
Investors return to XRP investment products
Institutional demand for XRP investment products remains steady, according to data from CoinShares .
Related: XRP flirts with $3 amid ETF approval hope: Is $3.60 the next stop?
XRP exchange-traded products (ETPs) posted inflows totaling $14.7 million in the week ending Friday, bringing their inflows for the year to $1.4 billion.
Other top-cap cryptocurrencies such as Bitcoin ( BTC ), Solana ( SOL ) and Sui ( SUI ) recorded net inflows of $524 million, $16.1 million and $600,000, respectively.
Ether ( ETH ) posted outflows of $912 million, suggesting a possible rotation of funds from the largest altcoin into other cryptocurrencies, including XRP.
The anticipation of an XRP ETF approval in the US has been a major driver of XRP’s recent performance, with the price in good position for more gains as more institutional capital flows into the XRP market.
XRP derivatives data leans bullish
XRP derivatives traders are also showing coming back, opening new positions, indicating a rise in speculative momentum.
XRP’s open interest (OI) has also increased by 11% in the past seven days to $8.3 billion, up from $7.4 billion posted on Sept. 4, signaling an uptick in trader participation. OI has increased by 4% in the last 24 hours alone, according to data from CoinGlass.
The funding rate — periodic payments exchanged between long and short traders in perpetual futures contracts to keep prices aligned with the spot market — has remained positive since Aug. 1.
This metric has increased steadily over the last 10 days, as seen in the chart below. This suggests that more traders are now taking long positions (betting on a price increase) compared to short positions (betting on a decline).
The increasing OI and positive funding rates could help XRP price to rebound above $3 in the short term.
XRP price eyes record highs
XRP price has been consolidating within a symmetrical triangle since mid-July in the daily time frame, data from Cointelegraph Markets Pro and TradingView shows.
It broke out of consolidation with a daily close above the upper boundary of the triangle at $2.95 on Monday.
“XRP has broken out of its multimonth consolidation, and confirmation of the breakout is occurring with the $3 test now in play,” analyst CasiTrades said in a Wednesday post on X.
Momentum is steadily building up, with the relative strength index, or RSI , rising to 54 from 36 over a week ago.
According to CasiTrades, key levels to watch on the upside once the resistance at $3 is cleared are $3.08 and $3.27.
“Beyond that, Fibonacci extensions from the larger consolidation haven’t changed and still point toward the $4.50 zone as a breakout target.”
However, bulls will have to overcome resistance from the multi-year high of $3.66 , which “will likely serve as the retest area once that move is made,” the analyst added.
Zooming in, fellow analyst Egrag Crypto said that an ascending triangle on the four-hour chart targeted $3.12 as long as the support at $2.97 holds.
“The measured target is $3.12, and it could even extend further.”
As Cointelegraph reported , a decisive close above $3 would open the door for the XRP/USDT pair to rally to $3.15 and later to $3.40.
Other analysts have even more ambitious targets for XRP, saying it is still on track to reach $20 this cycle, based on Elliot Wave analysis.
