Can the price of XRP reach 2.8 dollars after breaking through the resistance level of 2.55 dollars?

In the past four days, Ripple (XRP) has recorded an impressive increase of 11.4%. One of the main drivers behind this rise is strong accumulation from large investors (whales). The breakdown of the technical resistance level at $2.5 has contributed to a positive shift in market sentiment in the short term.

Source: TradingViewAccording to the latest report from Coinphoton, the price range of $2.5-$2.77 is considered a critical resistance area that buyers need to overcome to maintain the upward trend. Currently, the nearest peak level of $2.64 is facing pressure from the market.

If XRP successfully breaks through this level, the possibility of continuing to rise above $2.77 will be strengthened.

The price target for XRP this week is forecasted to reach $3. At the same time, Bitcoin (BTC) breaking through the $115,000 threshold also contributes to a positive momentum for market sentiment in the short term.

Open contracts of XRP have decreased to the lowest level since May

According to the analysis on CryptoQuant Insights by expert PelinayPA, the current open contract trend (OI) may set the stage for a new price increase of XRP. Specifically, OI is currently below $550 million, which corresponds to the low recorded back in May.

Source: CryptoQuantThe sharp decline of the cryptocurrency market on October 10 caused OI to drop significantly across the board. This event has driven the price correction process and the restructuring of the derivatives market.

Experts believe that the current conditions are similar to the initial phase of a new trend in the market.

If OI recovers along with strong demand in the spot market, XRP could completely aim for the supply zone of $3. In the case that momentum and demand continue to be maintained, the price of XRP could even reach the mark of $4.5.

Source: CryptoQuantThe recent taker buy/sell ratio has tilted towards buyers, a phenomenon that has only occurred a few times since May and is often associated with strong price increases.

Since August, whenever the price adjusts to the demand zone of $2.8-$3 , a high volume of taker orders has been recorded, reflecting positive expectations from this support zone.

The increase in taker buying volume as XRP breaks through the resistance of $2.55 is a positive signal. According to data from CryptoQuant, within just 24 hours, OI has risen from $550 million to $590 million.

Although the current signals are quite positive, investors need to be cautious of the major barriers ahead. The trend structure on the 1-day timeframe still shows signs of a breakdown.

The supply zone $2.8-$3 will be the key factor determining the next direction of XRP in the near term.

Mr. Teacher