XRP price climbs back above $2.40 amid growing open interest, indicating a resurgence in bullish sentiment and setting the stage for a potential upward continuation. After a turbulent week marked by sharp price swings, XRP is now showing signs of stabilization and strength near a key technical level.
The $2.40 price mark has emerged as a significant zone of interest, acting as the Point of Control (POC) — the price level with the highest traded volume in the current range. This area serves as a critical support, and its successful defense suggests that buyers are regaining control of the market narrative. The recent bounce from the lower boundary of the value area further reinforces the idea of strong demand, as buyers stepped in early to prevent a deeper correction.
Adding to the bullish case, open interest — a measure of open futures contracts — has been steadily increasing in recent sessions. This follows a sharp decline caused by widespread liquidations earlier in July, which flushed out excessive leverage from the market. The subsequent rise in open interest, alongside price recovery, indicates that traders are re-entering positions with a more cautious and resilient mindset. This pattern is often seen at the beginning of sustained upward trends.
The behavior of traders around the $2.40 level is particularly telling. Daily candle closes above this threshold signal strong market conviction. If this pattern continues, it will confirm $2.40 as a reliable support base. Moreover, the combination of rising open interest and steady price action suggests that new long positions are being opened, rather than traders simply taking advantage of a short-term bounce.
Volume confirmation remains critical. While open interest shows intent, actual market participation — as reflected in rising spot and derivatives volume — will be necessary to validate the strength of this move. Without sufficient volume, the rally risks being short-lived, potentially leading to another price rejection.
Further strengthening sentiment is the announcement that Evernorth Holdings, a Ripple-affiliated entity, is preparing for a $1 billion listing on the Nasdaq. This move aims to enhance institutional engagement with XRP and could provide a long-term boost to the token’s market credibility. Institutional support plays a vital role in sustaining higher price levels, especially during broader market recoveries.
From a technical standpoint, XRP will need to break above the next resistance cluster between $2.70 and $3.00 to confirm a full bullish reversal. This region has historically acted as a significant barrier, and a clean breakout beyond it would likely trigger renewed interest from swing traders and momentum funds.
On-chain metrics also point to a shift in sentiment. Accumulation addresses — wallets that have consistently added XRP without spending — are on the rise. This suggests that long-term holders are becoming increasingly confident in the asset’s prospects, reducing circulating supply and potentially aiding price appreciation.
Funding rates across major exchanges remain relatively neutral, indicating that the current trend is not driven by excessive leverage. This healthy market condition supports a more sustainable upward move, as it reduces the risk of sudden liquidations that could derail momentum.
Looking ahead, XRP’s ability to hold the $2.40 level will be key in determining the next direction. A sustained consolidation above this support, accompanied by growing interest from both retail and institutional players, could pave the way for an extended move toward the psychological $3.00 barrier.
However, traders should remain cautious of potential macroeconomic headwinds or regulatory developments that could impact the broader crypto market. Despite the positive momentum, XRP remains sensitive to external risks, particularly those related to ongoing legal challenges and shifting investor sentiment.
In summary, XRP is currently at a pivotal stage. The reclaim of $2.40, rising open interest, and improving on-chain signals all point to a potential continuation of the bullish trend. Still, the path to higher levels requires strong volume confirmation and a favorable broader market backdrop. If these conditions align, XRP could be poised to retest and possibly surpass its previous highs in the coming sessions.