• XRP price has rebounded from VWAP support, with narrowing bands signaling price compression ahead of a potential upward continuation.
  • Whales accumulated 320 million XRP after Ripple and the SEC ended all appeals, removing a long-standing regulatory overhang.
  • Derivatives markets show rising open interest and bullish long/short ratios, indicating traders’ positioning for a move toward $5–$7.

XRP is showing technical and market conditions that suggest a bullish breakout could be imminent, with $5–$7 identified as the next target range.

VWAP Pullback Signals Institutional Accumulation

CryptoPulse analysis shows XRP has retraced into its VWAP averages, an area often used by institutional traders as dynamic support. The pullback follows a strong upward move, indicating consolidation rather than trend reversal.

The 4-hour chart marks a clear bounce at the lower VWAP boundary, where buying activity has visibly increased. This level is known for attracting strategic accumulation by larger players preparing for the next upward phase.

Narrowing VWAP bands signal price compression, a condition often preceding significant breakouts. With resistance levels at $3.50, $4.00, and then $5–$7, analysts suggest that a rise in trading volume from this zone could accelerate gains.

Whale Purchases and Legal Resolution Strengthen Outlook

Market analyst Ali reports that whales acquired 320 million XRP in the last 72 hours. This accumulation coincides with Ripple and the U.S. SEC formally withdrawing all appeals, ending a multi-year legal dispute.

The closure of the case removes long-standing regulatory uncertainty that has influenced XRP’s performance in previous cycles. Some market observers compare current conditions to 2017’s breakout phase, when prices saw rapid appreciation.

Order book activity shows liquidity absorption at key resistance zones, pointing to continued accumulation by large holders. This aligns with the view that institutional buying is supporting a medium-term bullish move.

Derivatives Market Data Confirms Bullish Bias

Derivatives statistics add further backing to the bullish case. Trading volume has risen 28.68% to $14 billion, while open interest climbed 6.51% to $8.84 billion, indicating growing trader commitment.

Source; Coinglass

Options activity is also surging, with volume up 179.59% and options open interest increasing 44.32%. These figures suggest leveraged bets are being placed on continued price appreciation.

Long/short ratios are skewed toward the upside. Binance XRP/USDT positions show 2.90 longs per short, with top traders at 3.28. Similar ratios on OKX highlight that experienced traders are positioned for gains, reinforcing the expectation of a breakout toward the $5–$7 range if buying momentum strengthens.

Ava Nakamura is a seasoned crypto journalist and blockchain enthusiast who has been covering digital assets since 2017. With a sharp eye for market trends and a passion for decentralization, Ava breaks down complex crypto topics into engaging stories. She covers Bitcoin, altcoins, DeFi, and everything in between — aiming to empower readers through knowledge.

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