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Ripple Price Predictions: XRP Aims for a Bullish Close on Tuesday as Retail Investors Regain Their Risk Appetite
XRP bulls are moving to reduce losses after rising to $2.40 during the day.
Retail interest rises as the average open interest in XRP futures contracts reaches $3.8 billion.
The MACD indicator shows a buy signal on the daily chart.

The value of Ripple (XRP) has risen alongside major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH), surpassing $2.50 on Tuesday. This recovery comes after Ripple continued its decline to $2.40 earlier in the day, reflecting sharp fluctuations in the cryptocurrency market.

Traders will be watching for a daily close above $2.50 to confirm the possibility of an XRP recovery. Key short-term milestones include a sustained breakout above the resistance range between $2.61 and $2.70.

Demand for retail stabilizes with the recovery of XRP
The XRP derivatives market is witnessing stability, as evidenced by the recovery of open interest in futures (OI) to $3.8 billion, up from around $3.5 billion on Sunday. Although the size of this increase is small, it reflects a potential shift in sentiment from negative to positive.

The XRP OI price peaked at $10.94 billion after days of reaching its all-time high of $3.66 on July 18, confirming the steady demand from retail traders. Therefore, a consistent upward trend in OI is needed to bolster this bullish momentum this week.

Chart of open XRP futures contracts.

The sharp decline in the weighted funding rate for OI to 0.0038% from 0.0068% on Monday indicates that traders are increasingly piling into short positions, signaling negative sentiment surrounding XRP.

Nevertheless, the situation has not reached extreme levels, considering that the funding rate weighted by the OI index remains positive on Tuesday. Upcoming sessions may provide a clear insight into the trend of retail interest. The reversal indicates that sentiment is leaning towards a sustainable recovery of XRP's price.

Weighted XRP Funding Rate Chart for OI.

Technical Forecast: XRP Recovers Control of the Rise
XRP is trading above the key $2.50 level, supported by a sudden improvement in risk appetite on Tuesday. According to the daily chart, this marks the fourth consecutive day of recovery after the sell-off on Friday that brought it down to $2.18.

If the Moving Average Convergence Divergence (MACD) indicator confirms a buy signal on the daily chart, with the blue MACD line crossing above the red signal line, interest in XRP will rise, increasing the chances of a prolonged upward trend.

The daily chart for the XRP/USDT pair

The 200-day Exponential Moving Average (EMA) at $2.61 represents the first major resistance, and it is likely to encourage early profit-taking. Therefore, maintaining a bullish trend above this level, followed by congestion in selling activity at $2.70, will strengthen bullish expectations.