Pundit: If You’re an XRP Holder, I’ve Some Interesting Observations for You Today

XRP is approaching a price area that could determine its next short-term move, with Financial Advisor Cryptoinsightuk identifying several technical signals that may support a continuation higher.

While the analyst is watching the $1.29 level closely as XRP trades near previous resistance, changes in open interest and funding suggest traders may be building short positions around the current range lows.

XRP Tests Key $1.29 Area

Cryptoinsightuk, in a tweet, identified $1.29 as an important area on the daily timeframe. The analyst noted that XRP previously wicked into this region and faced resistance before eventually reaching its August 26 lows.

XRP is now approaching the same area from above, raising the possibility that the former resistance zone could act as support. Cryptoinsightuk said the key factor to monitor is whether XRP reacts positively if the price reaches this level.

The analyst also pointed to the Relative Strength Index (RSI), which is currently bouncing from the 50 level on the daily chart. Cryptoinsightuk described this development as generally bullish and noted that the RSI behavior provides additional confluence for a potential continuation higher.

Hourly Liquidity Points Toward Higher Levels

The hourly liquidity data also forms an important part of Cryptoinsightuk’s analysis. The analyst identified a small liquidity pool around $1.285, which sits close to the $1.29 support area.

Although there is additional liquidity around $1.26, Cryptoinsightuk noted that the largest liquidity concentrations on the hourly timeframe sit above the current price. One major pocket sits around $1.49, while another is located near $1.55.

Cryptoinsightuk said that even if XRP sweeps the liquidity below the current range, the analyst would still expect a move toward the larger liquidity areas above.

Open Interest Shows Signs of Short Positioning

Changes in XRP’s open interest have also become a key part of the setup. Since September 9, XRP has remained within a range around its lows, while funding has repeatedly moved between positive and negative territory.

During this period, open interest has declined, which Cryptoinsightuk had been looking for as a reset while XRP established its current range. However, the analyst observed a notable change over the previous four to five hours.

Open interest measured in coins has started rising while funding has turned negative again. Cryptoinsightuk interpreted this combination as a sign that short positions may be entering around the lows of the range.

The analyst compared the setup with XRP’s previous lows, when rising coin-denominated open interest preceded a short squeeze that pushed XRP from around $1 to above $1.40. Cryptoinsightuk questioned whether a similar move could occur on a smaller timeframe.

$1.70-$1.85 Liquidity Remains in Focus

On the daily timeframe, Cryptoinsightuk identified substantial liquidity between $1.70 and $1.85, while another pool remains around $0.96 below the market.

The analyst acknowledged that XRP could still move toward the downside liquidity, but emphasized the larger concentration above the current price. Cryptoinsightuk ultimately expects XRP to eventually move toward that liquidity, describing it as a matter of when rather than if.