Ripple's XRP has seen a 3% increase in the last 24 hours, making it the top gainer in the market currently. The surge in XRP's price is accompanied by a rise in derivatives activity, with XRP's open interest reaching its highest level in three months.

The upward trend of XRP could continue in the short term with a strong bullish sentiment. Despite a $14 billion decrease in total market capitalization over the past day, XRP's open interest has increased by 17% to $5.38 billion.

The spike in XRP's open interest indicates greater investor participation and a growing positive outlook on the asset. An increase in open interest, coupled with a rise in price, signals the entry of new money into the market. This suggests that bullish positions are strengthening, reinforcing the ongoing rally.

Technical indicators support this optimistic view, with the MACD indicator showing a bullish trend on the daily chart. When the MACD line is above the signal line, as is the case with XRP, it suggests bullish momentum and a potential price increase. Traders interpret this crossover as a signal to buy, which could drive up demand and price for XRP.

Currently trading at $2.55, XRP has bounced off the support level at $2.50, aiming for a target price of $2.71, last seen on March 3. However, if selling pressure resumes, breaking below the $2.50 support could lead to a price decrease to $2.29, invalidating the bullish outlook.