XRP open interest hits $2.89 billion as bulls bet on another breakout

Ripple’s XRP is trading higher on Monday as improving global sentiment lifted risk assets following reports that the United States and Iran had reached a preliminary peace agreement expected to take effect later this week.

The broader crypto market has responded positively to signs of de-escalation, with investors rotating back into risk assets amid expectations of reduced geopolitical pressure.

The momentum indicators and derivatives data suggest further upward movement in the near term. 

US-Iran agreement eases energy market concerns

XRP is up by nearly 6% in the last 24 hours and is currently trading above $1.24. The primary catalyst behind the rally is the agreement between the United States and Iran. 

As part of the deal, the naval blockade on Iranian ports is expected to be lifted, and the Strait of Hormuz reopened, easing concerns over global oil and gas supply disruptions.

The agreement reportedly extends an earlier ceasefire framework by 60 days to allow continued nuclear negotiations between both sides.

However, the full terms of the deal have not yet been released.

The crypto market also reflected a modest improvement in sentiment.

The Crypto Fear & Greed Index rose to 25 on Tuesday, up from 18 seen on Sunday and significantly higher than last week’s average of 8, indicating a gradual shift away from extreme fear.

While sentiment remains cautious overall, the move suggests early signs of risk appetite returning to digital assets.

The XRP derivatives market echoed this improving sentiment. Open interest in XRP perpetual futures rose to US$2.9 billion (approx. $5.1 billion) on Tuesday, up from US$2.5 billion (approx. $4.4 billion) recorded the previous day. 

Although the increase is modest, it suggests traders are gradually increasing exposure and positioning for a continued recovery in XRP’s price trend.

XRP technical outlook: momentum improves, but key resistance remains

The XRP/USD is bullish and efficient as XRP is currently trading above $1.24, recovering from a monthly low of $1.05. 

However, the token remains below key moving averages, including the 50-day EMA at $1.29, the 100-day EMA at $1.38, and the 200-day EMA near $1.60.

Despite this, momentum indicators are showing early signs of improvement.

The MACD histogram has turned positive on the 4-hour chart, while the Relative Strength Index (RSI) has moved above the 65 level, approaching an overbought condition. 

If the bullish trend persists, immediate resistance is seen at the 50-day EMA around $1.29. A break above this level could open the door toward $1.38, followed by $1.43.

However, if XRP faces a rejection around the $1.29 resistance level, it could retest the $1.05 swing long in the near term. The bulls will need to defend this level to ensure that XRP doesn’t slip below the $1.0 psychological mark. 

Overall, XRP’s short-term outlook remains cautiously constructive, with improving momentum offset by significant overhead resistance.