XRP bulls storm back as open interest climbs, key resistance in focus

Ripple's XRP is up by less than 1% on Thursday, extending its rebound after successfully defending a key support level earlier in the week. 

Improving derivatives data and easing bearish momentum suggest XRP could continue recovering, although major technical resistance remains ahead.

XRP has gained more than 1% this week, reflecting improving market sentiment across both digital assets.

Open Interest growth signals fresh buying activity

Derivatives data points to renewed trader participation in XRP. According to Coinglass, XRP futures Open Interest (OI) climbed to approximately USD 2.4 billion (approx. $3.5 billion) on Thursday after dropping to USD 2.3 billion (approx. $3.3 billion) earlier in the week.

The combination of rising prices and increasing Open Interest typically indicates that new capital is entering the market rather than existing traders simply closing positions. This trend often supports a continuation of the current price recovery.

Market sentiment has also improved in perpetual futures markets.

XRP recorded positive funding rates beginning on Tuesday, suggesting that long-position traders are once again willing to pay a premium to maintain bullish positions.

Positive funding rates generally reflect growing confidence among derivatives traders and often accompany improving short-term price momentum.

Despite stronger derivatives metrics, on-chain indicators present a more nuanced outlook.

CryptoQuant data suggests XRP's spot and futures markets remain relatively balanced, with whale activity appearing neutral.

This stability supports the possibility of a continued recovery if broader market sentiment remains favorable.

XRP price forecast: Bulls face key resistance near 50-day EMA

XRP traded around $1.11 on Thursday after rebounding from support near the upper boundary of its descending parallel channel.

Although buyers have regained some momentum, XRP continues to trade below several important moving averages, keeping the broader technical outlook cautiously bearish.

XRP remains below the 50-day Exponential Moving Average (EMA) at $1.155, the 100-day EMA ($1.252), and the 200-day EMA ($1.456).

These moving averages continue to cap upside attempts and define the prevailing downtrend.

Momentum indicators, however, suggest bearish pressure is easing. The Relative Strength Index (RSI) is hovering slightly above the neutral 50 level, indicating a balance between buyers and sellers.

Meanwhile, the Moving Average Convergence Divergence (MACD) has turned slightly positive, signaling that downside momentum is weakening even though a confirmed bullish reversal has yet to materialize.

If buyers maintain control, XRP could test the first major resistance at $1.155 (50-day EMA), with another hurdle at $1.252 (100-day EMA).

A daily candle close above these levels could expose the $1.300 psychological level and the 200-day EMA ($1.456) resistance in the near term. 

A decisive break above the 50-day EMA would improve the short-term outlook and increase the likelihood of a stronger recovery.

On the downside, immediate support is located near the lower boundary of XRP's descending channel around $1.027.

Holding above this level would preserve the current recovery structure.

However, a breakdown below channel support could reinforce the broader bearish trend and expose XRP to additional losses.

Improving derivatives activity and positive funding rates suggest investor confidence is gradually returning to XRP. 

While XRP's technical indicators show signs of stabilizing, the token must overcome several major resistance levels before confirming a sustained bullish reversal.