XRP (XRP) is rising in line with the broader crypto market on Sept. 17, rallying 3.5% in the past 24 hours and hitting an intra-day high of $0.59. Similarly, the global crypto market capitalization is up by 4.5% over the same period to $2.1 trillion.
XRP/USD daily chart. Source: TradingView
Let’s look at the factors driving the XRP price up today.
XRP surges as crypto traders anticipate the Fed’s rate cut decision
Data from Cointelegraph Markets Pro and TradingView shows that XRP price closed Sept. 16 at $0.58, putting down just 2.57% from the $0.60 level. The token finished down 27% from its $0.74 March 11 multi-year high.
XRP has risen two days in a row, and the potential for a move above $0.60 persists. Three strong moves in the recent past have pushed the token above this level.
Meanwhile, traders are now focusing their attention on how XRP price will react after the Federal Reserve’s highly anticipated decision on interest rates on Sept. 18.
The 20 bps or 50 bps debate remains the main focus, with futures markets pricing in a 61% possibility of a 50 basis points (bps) rate cut, according to the CME Group’s FedWatch tool. This is a notable increase from a 34% likelihood of a half-a-point rate cut last week. If this happens, XRP and other risk assets may see price rallies in the short term.
Target rate probabilities for the Sept. 18 FOMC meeting. Source: CME Group FedWatch tool.
XRP open interest and trading volume rise
Accompanying XRP’s bullish price action today is a jump in its open interest (OI), which has risen by 7% over the last 24 hours to $661.7 million, according to Coinglass data.
XRP open interest. Source: Coinglass
OI is an important metric in derivatives trading that shows the total number of open or active positions in a contract. OI simply tracks the total number of active participants for a coin or a contract.
An increasing OI value means futures traders are focusing their attention on XRP at the moment as more investors inject more money into the market.
Additional data from CoinMarketCap reveals that XRP’s spot trading volumes increased significantly by 79% over the past week, totaling $1.2 billion at the time of publication.
Both metrics suggest that XRP’s rally involved both retail and futures activity, explaining the ongoing upward rally.
Related: Price analysis 9/16: SPX, DXY, BTC, ETH, BNB, SOL, XRP, DOGE, TON, ADA
XRP’s market structure points to further upside
XRP price action is part of an ongoing recovery trend that began after the altcoin found support from the $0.52 demand area on Sept. 6. This upward trajectory has seen XRP reclaim a crucial support zone provided by the 50-day, 100-day and 200-day exponential moving averages (EMAs) between $0.55 and $0.56.
The bulls are now facing resistance from the $0.60 level. Note that a daily candlestick close above this level would show the bulls’ ability to sustain the recovery.
XRP/USD daily chart. Source: TradingView
The position of the relative strength index at 57 suggests that the market conditions still favor the upside.
Bulls now eye a 6.4% recovery toward the neckline of the v-shaped recovery chart pattern above $0.63 over the next few days.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.