XRP price extended its recovery on Tuesday. The gains came as the broader crypto market responded to the ceasefire between Israel and Iran.
While traders are watching for a bullish breakout above the $2.38 resistance, XRP’s longer-term technical chart has drawn fresh attention due to a head and shoulders pattern.
Veteran analyst Peter Brandt pointed to the formation on the weekly chart but noted that the price is still holding above key support at $1.8790.
XRP is now trading at $2.18, reflecting strengthened bullish sentiment in the short term.
Source: CoinMarketCap
Meanwhile, derivatives activity is on the rise.
XRP open interest surged past $3.77 billion, indicating increased market participation and suggesting that leverage could fuel further gains.
Derivatives data signals increased market activity
Data from CoinGlass shows XRP’s open interest jumped 6.66% to $3.77 billion, reflecting strong inflows into the derivatives market.
The funding rate flipped from -0.0072% to 0.0059%, implying growing bullish sentiment.
When funding rates are positive, it means traders are paying a premium to hold long positions, signalling upward price pressure in the short term.
The liquidation data supports this trend. Short liquidations totalled $9.38 million, compared to $3.10 million in long positions, showing that bearish bets were squeezed as XRP climbed.
Technical levels and the MACD signal a potential breakout
The price of XRP was trading above $2.00 at press time on Tuesday, recovering from a weekly low of $1.9083.
The rebound helped avoid a daily close below the psychologically important $2.00 mark.
XRP price is now approaching its 50-day Exponential Moving Average (EMA) at $2.2164 and 100-day EMA at $2.2324.
If it manages a daily close above these levels, the next key resistance lies at $2.38, a trendline marked by previous peaks on 16 January, 20 January, and 14 May.
The Moving Average Convergence Divergence (MACD) indicator shows the MACD line nearing the signal line, suggesting a potential bullish crossover. This is commonly viewed as a buy signal.
The Relative Strength Index (RSI) is also climbing toward the 50 level from earlier bearish territory, indicating strengthening momentum.
Peter Brandt flags a head and shoulders but remains cautious
Despite the near-term bullish signals, the weekly chart shows a head and shoulders formation, often considered a bearish reversal pattern.
According to analyst Peter Brandt, the neckline of this structure is at $1.8790.
A break below this level could point to a steeper correction, but Brandt suggests the pattern has not completed.
He highlighted that the long-range Doji candle formed on 7 April — a result of high volatility — does not align with the expected symmetry of a typical head and shoulders pattern.
Brandt added that he remains cautiously optimistic as long as XRP holds above the $1.8790 neckline.
Should the token close below this level on the weekly chart, it could signal a shift in trend and a possible review of the technical setup.
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