XRP Derivatives Traders Show Bullish Sentiment
Traders in XRP derivatives are displaying bullish sentiment. Open interest in XRP futures surged by over 1% within 24 hours, reaching $2.86 billion. This increase in activity on both CME and Binance suggests that traders with significant capital at stake are betting on a price increase.
Sentiment Analysis Points to Potential Price Stabilization
On-chain analytics firm Santiment observed a shift in market sentiment on May 26. The firm noted that the ratio of bullish to bearish comments on social media had fallen to 1.1:1, indicating the most fearful sentiment in three weeks. Historically, such levels of fear have often preceded short-term price stabilization or a rebound. Santiment’s analysis suggests that when fear peaks, weaker investors have already sold, and larger entities or institutions tend to step in and absorb the selling pressure.
At the time of reporting, XRP was trading at $1.33, up approximately 1% from a 24-hour low of $1.32. Trading volume increased by 5% over the same period, further supporting the upward trend.
Technical Indicators and Potential Resistance Levels
On the daily chart, XRP is trading below its 50-day, 100-day, and 200-day moving averages, with the Relative Strength Index near 41. Reports suggest that a break above a multi-month trendline could potentially lead to a price target of $1.50.
Acquisition Rumors Surround Ripple and Circle
Rumors regarding a potential acquisition have also been circulating. Speculation suggests that Ripple is preparing to acquire Circle, the issuer of the stablecoin USDC, for $11 billion. This rumor originated from a post by the XRP Ledger Foundation on X. However, no executives from either company have commented on the speculation.
This is not the first time such rumors have surfaced. Last year, Ripple CEO Brad Garlinghouse denied a Bloomberg report that Ripple had pursued Circle at a valuation of $4 to $5 billion. Circle, in turn, stated that it was not for sale and was focused on its IPO. Reports suggest that the XRP Ledger Foundation’s post was more likely related to a major XRPL mainnet upgrade scheduled for May 27.
Activity in Chris Larsen’s Wallets
Adding to the day’s developments, wallets associated with Ripple co-founder Chris Larsen were reported to have become active again. The timing of this activity has drawn attention ahead of the US midterm elections. No further details about the transactions were immediately available.
Santiment noted that during periods of high optimism, when the bullish-to-bearish ratio rises, whale activity tends to decrease, and prices often experience a pullback.
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