Ripple’s XRP is showing strong signs of entering a sustained bull market phase, as market data reveals a powerful undercurrent of buying strength and renewed investor confidence.

With a 20% surge over the previous week, XRP jumped ahead of Tether (USDT) to claim the third spot on the list of biggest cryptocurrencies by market cap, just after Bitcoin and Ethereum. Over the last two weeks, XRP has tried to get past $2.60, an important resistance level, twice but to no avail.

The asset is still moving largely upward despite briefly losing ground. Binance’s futures market data highlights this trend by continuously showing buyers stepping in to take over sell side pressure, which often precedes a breakout.

XRP’s Steady Range Hints at Market Resilience

With a Taker Buy/Sell ratio of 0.91, traders on Binance are still betting against XRP slightly more than they are betting for it. Still, XRP has set up a steady range of $2.30 to $2.60, making it clear that buyers are overcoming sellers and driving the price up.

XRP Eyes Breakout as Binance Data Turns Bullish

According to analyst BorisVest on CryptoQuant, this situation might bring on a mild short squeeze, where a bunch of short sellers are forced to pay higher prices to exit losing positions, making the price rise quickly. With $344 million in new open interest on Binance over the last six days, it is clear that investors are getting ready for potentially big moves in XRP.

Given that open interest has jumped now, after the massive liquidations last month, BorisVest says the crowd has returned and expects them to trade for profits.

ADX Signals Bullish Strength for XRP

A rise in bullishness is also seen in XRP through a reversal in funding rate, as it is now closer to being balanced between long and short trades. According to analysts, this transition could mean more volatility, mainly if short sellers start taking on too many positions.

XRP’s rally is also being powered by the debut of the Teucrium XRP Leveraged Futures ETF (XXRP), marking the first of its kind to launch in America. In the time since April, more than $117 million has flowed into the fund, which points to growing institutional interest in XRP.

XRP Eyes Breakout as Binance Data Turns Bullish

Currently, the ADX (Average Directional Index), a tool used to analyze trend strength, is giving positive signals for bulls. A quick rise above $2.60 could drive XRP up to its earlier top of $3.40, set in 2018.

The market may be unpredictable, yet the fact that open interest is rising, XRP ETFs are drawing in investors, and prices are steady offers XRP bulls reason for optimism. If the sellers do not strengthen, XRP’s price may continue its upward trend.