Ripple (XRP) prices have recently rebounded from their decline, drawing growing attention to the possibility of further gains. XRP, which had been pushed down to the $1.28 range, recovered to $1.34, with both buy orders and long positions increasing.

On the 16th (local time), according to cryptocurrency news outlet CoinGape, XRP was trading at $1.34 at the time of reporting. This represents a 4.6% rise from the day's low of $1.284. CoinGape reported that XRP's price rebound came alongside an increase in buying volume, with market participants placing their hopes on a price recovery.

Buying Volume Surges After Dipping Below $1.30... $184 Million Flows Into Binance

According to CoinGape, cryptocurrency analyst Darkfost analyzed that high inflation rates in the recent Consumer Price Index (CPI) and Producer Price Index (PPI) triggered selling pressure in the crypto market, and in this process, leveraged traders got an opportunity to buy XRP below $1.30.

In fact, within an hour of XRP's price falling below $1.30, over $73 million in buy trading volume flowed into Binance, and after a few hours, buy trading volume exceeded $184 million. CoinGape explained that buy trading volume increased rapidly as Binance traders opened new positions. This movement reportedly contributed to XRP's rebound from its recent multi-week low of $1.284.

However, CoinGape also noted that the increased short-term capital inflows raise the possibility of expanded price volatility. If traders who bought XRP at the low begin taking profits after the rebound, price fluctuations could widen in the short term.

Open Interest Falls Sharply... Long Positions and Funding Rates Rise

Despite XRP's price rebound, open interest in the futures market has decreased significantly. According to CoinGlass data cited by CoinGape, XRP open interest stood at $2.84 billion at the time of writing, the lowest level since September 18 (local time). This marks a significant decrease from the $3.54 billion recorded on October 7 (local time).

However, unlike the decline in open interest, XRP long positions are increasing. CoinGape reported that long positions in XRP are growing as Ripple expands its business into institutional financial markets. According to Hyperliquid whale tracking data, on October 15 (local time), three out of four newly opened whale positions in XRP were long positions, with these long positions totaling $7.4 million.

The funding rate also rose. According to CoinGape, the weighted funding rate climbed to 0.0101%, the highest level in the past week, while the long/short ratio also rose to 1.05. This means the number of accounts holding long positions exceeded those holding short (sell) positions.

Rise to $1.42 Forecast vs. Descending Triangle Warning

The market is watching whether XRP can continue its current rebound and rise to $1.42. According to CoinGape, cryptocurrency analyst Ali Martinez forecast on his X account that XRP's price could rise to $1.42. The $1.42 level he cited corresponds to the middle line of a parallel channel on the one-hour candlestick chart. Previously, some analysts had also predicted that XRP could rise to $1.42 if the upward trend continues.

However, downside risks remain in the longer-term trend. CoinGape reported that a descending triangle pattern is forming on XRP's daily chart. This pattern is interpreted as a warning signal that a bearish reversal is possible if the price falls below a key support level. XRP's key support level is currently set at $1.28, and CoinGape explained that if this price breaks down, XRP could fall to $1.139, corresponding to the 123.6% Fibonacci extension ratio.

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