XRP perpetual futures open interest climbed to $2.89 billion on Tuesday, signaling that traders are positioning for further upside as the token extends its recent recovery. The digital asset is up nearly 6% in the past 24 hours, trading above $1.24, as improving global sentiment and a reported US-Iran peace agreement boost risk appetite across crypto markets.
Geopolitical Catalyst Drives Risk-On Sentiment
The rally follows reports that the United States and Iran reached a preliminary peace agreement, expected to take effect later this week. Under the deal, the naval blockade on Iranian ports would be lifted and the Strait of Hormuz reopened, alleviating concerns over global oil and gas supply disruptions. The agreement reportedly extends an earlier ceasefire framework by 60 days to allow continued nuclear negotiations, though full terms have not been disclosed.
The broader crypto market responded positively to the de-escalation. The Crypto Fear & Greed Index rose to 25 on Tuesday, up from 18 on Sunday and well above last week's average of 8, indicating a gradual shift away from extreme fear. While sentiment remains cautious, the move suggests early signs of risk appetite returning to digital assets.
Derivatives Data Points to Growing Bullish Positioning
The XRP derivatives market echoed this improving sentiment. Open interest in XRP perpetual futures rose to $2.89 billion on Tuesday, up from $2.5 billion 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.
This rise in open interest aligns with broader market trends. For context, XRP Holds Below $1.40 Despite ETF Inflows and Rising Open Interest highlights similar dynamics in recent weeks.
Technical Outlook: Momentum Improves but Key Resistance Looms
XRP/USD 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.
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 low in the near term. Bulls will need to defend this level to ensure XRP doesn't slip below the $1.00 psychological mark.
Overall, XRP's short-term outlook remains cautiously constructive, with improving momentum offset by significant overhead resistance. Traders are watching for a decisive break above $1.29 to confirm the next leg higher.
For investors monitoring broader market moves, Dollar Index Eyes Breakout as Fed Prioritizes Inflation Over Rate Cuts and UBS Maintains $6,200 Gold Target for 2026, Sees Rally Contingent on Interest Rate Path provide additional context on macroeconomic factors influencing risk assets.
This article is for informational purposes only and does not constitute financial advice.
