XRP Surges 20% as Futures Open Interest Soars
XRP is now trading at $2.58, marking a 20% gain in just one week. This outpaces teh broader crypto market,which saw a 13% increase over the same period.
The price hike is accompanied by a notable rise in derivatives activity. According to Glassnode, XRP futures open interest jumped from $2.42 billion to $3.42 billion in a week. This $1 billion increase, or 41.6%, suggests new capital is entering the market.
Open interest is the total number of active futures contracts. When it rises wiht the price, it usually means new money is coming in, not just traders closing positions.This pattern indicates strong confidence in XRP’s future direction.
Technical indicators also support this bullish sentiment. XRP is trading above key moving averages, including the 10-day, 50-day, and 200-day averages. The relative strength index is at 68, nearing but not yet in the overbought zone, suggesting the trend could continue.
Institutional interest is also growing. The XXRP ETF, which offers exposure to XRP for institutional investors, has seen five weeks of inflows.Last week,it brought in $14 million,up from $10 million the previous week. Despite its higher management fee, investor interest remains strong.
Speculation is mounting that spot XRP ETFs will soon be approved by the U.S.Securities and Exchange Commission. If approved, inflows could reach $8 billion in the first year, surpassing Ethereum ETF inflows as September 2024.
With strong technicals, growing institutional interest, and rising open interest, XRP looks poised for a significant breakout if current trends continue.
