Price of XRP Hits 3-Year High as Futures Open Interest Sets New High

When both OI and prices rise, it usually means that fresh capital is joining the market, which is a sign of a bullish trend.

Source: Crypto News

Story Highlights

• After a 97% increase over the last week, the price of XRP is currently trading above $1.20, reaching its highest levels in three years.
• The SEC’s appeal is still pending, with a decision expected by January 2025, notwithstanding Ripple’s 2023 decision that XRP is not a security for retail investors.

As the price of XRP, the cryptocurrency supported by Ripple Labs, hits levels not seen in three years, it is generating news. However, the thrill extends beyond its increasing worth. With XRP futures open interest reaching a record high off about $2.10 billion, traders are becoming more active. Some market analysts even think that XRP might repeat the 2018 trend in which it surged to $3.

Source: (CoinGlass)

Breaking Records in Futures Activities

XRP has increased by over 97% in the last week, making it one of the best-performing assets in the cryptocurrency market. Even if the XRP has somewhat decreased from its peak of $1.20, it still has a lot of momentum.

XRP’s price surge. (CoinDesk/TradingView) (CoinDesk/TradingView)

The growth of XRP is also clear in its futures trading. With over 2 billion tokens valued at around $2 billion held in futures contracts, open interest set a record on Saturday. This shows that more traders are taking part in anticipation of larger price changes.

“The increase in XRP futures open interest shows more traders are interested, which frequently shows they expect prices to go up,” stated Nick Forster, the creator of a DeFi system.

51% of traders are betting against future price increases, indicating a modest tilt toward shorts, according to long/short data.

Ripple’s Victory Over the SEC

The recent growth of XRP is largely a result of Ripple’s legal disputes. A federal judge declared in July 2023 that when XRP is offered for sale to individual investors, it is not a security. After years of ambiguity, this ruling provided much-needed clarification regarding XRP.

Source: Cryptopolitan

Although Ripple received a $125 million fine for institutional sales, the business and its community viewed the verdict as a significant win. With a deadline of January 2025, the SEC may have challenged the ruling.

Is XRP Able to Repeat Its 2018 Rally?

A symmetrical triangle formation and other bullish chart patterns have stoked conjecture that XRP may return to those highs.

Analysts warn that a decline below $1.1380 would lead to a downturn, with $1.05, $0.93, and $0.88 serving as important support levels.