XRP Primed for Breakout as Binance Data Shows Seller Exhaustion—Time to Ride the Wave?

Binance’s order book paints a telling picture: XRP’s stubborn sellers are finally getting absorbed. The digital asset—long stuck in regulatory purgatory—now flashes the classic signs of a coiled spring.

Key signals: Liquidity pools show buy walls thickening below $0.55, while ask-side orders thin dramatically above $0.60. Market depth charts reveal what institutional traders call the ’slow bleed’ pattern—when persistent dumping fails to crush price, the shorts get squeezed.

Timing the pop: Fibonacci retracement from last month’s 20% rally suggests $0.63 as the next resistance. A clean break there could trigger algorithmic traders to pile in, though let’s be real—half the ’bullish volume’ will probably be wash-trading bots congratulating each other.

Bottom line: This isn’t 2017’s mindless euphoria. It’s a textbook absorption phase. Whether you’re swing trading or accumulating, the charts say one thing—weak hands are out of ammo.

• XRP climbed 21% in a week, now trading at $2.58 with steady upward pressure.
• Open interest rebounded from $530M after plunging from $1.5B, showing renewed trader confidence.
• Analysts eye $3.01 and $4.40 targets, with $2.53 now acting as strong support for bulls.

XRP is showing fresh signs of strength after bouncing back from a drop in market interest. Over the past week, the asset has climbed 21%. As of now, it trades at $2.58, with a 3.41% increase in the last 24 hours.

The price is now comfortably above recent lows, and there’s renewed interest from traders. Analyst BorisVest from CryptoQuant shared insights pointing to an increase in XRP derivatives activity on Binance. The surge in speculative positions suggests that some traders may be accumulating.

After a sharp decline in open interest—a measure of total unsettled futures contracts—the market appears to be rebounding. Open interest had dropped to $530 million from a high of $1.5 billion. Its recent recovery hints at rising confidence among participants.

Funding Rate Neutral as Market Rebalances

BorisVest also reviewed Binance funding rates to see whether long or short positions dominated. During the recent market correction, XRP’s funding rate turned negative—an indication of increased short interest.

This shift raises the potential for a short squeeze, where traders betting against the asset are forced to buy back at higher prices to cover losses, potentially accelerating the upward momentum.

At the moment, the funding rate has returned to neutral. This suggests a balance between those betting on higher prices and those expecting declines. Still, subtle signs suggest short interest is slowly building again, raising the chance of another squeeze if prices continue to rise.

A key indicator in the current setup is the Taker Buy/Sell Ratio. This measures whether aggressive market orders are mostly buys or sells. With XRP, the ratio is at 0.91, indicating sellers are slightly more active. Normally, that WOULD push prices down. But prices remain steady, which may mean larger players are buying up the supply quietly.

CryptoQuant contributor BorisVest said the data shows that “aggressive selling is meeting strong absorption,” hinting at early stages of accumulation. This kind of behavior often shows up before major upward price moves. He points to XRP’s current derivatives behavior as an example of market players preparing for what might be a breakout.

XRP Chart Structure Back Bullish Case

In a separate post on X dated May 14, trader 1981 said “$XRP is heating up,” pointing to a breakout above the $2.53 resistance level, which now acts as strong support. This breakout signals a bullish shift, with price gaining momentum on the 1-hour chart.

The trader has identified $3.01 as the next target for XRP, aligning with the 1.272 Fibonacci extension level—a key short-term resistance point. A decisive break above this level could signal further upside momentum. He also points to a major resistance zone around $4.40+, which he marks as a potential peak within the current setup.

According to his analysis, XRP’s chart structure remains strong, supported by rising trendlines. The recent shift of the $2.53 level from resistance to support indicates that bullish momentum has taken hold.

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