More than $1 Billion in Open Interest Indicates Potential Breakout
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XRP has seen its value surge to $2.61 over the past 24 hours, maintaining a consistent upward trend, with a total increase of 22% over the last week. Many traders are actively engaging in futures contracts.
A significant highlight is the rise in open interest, which has exceeded 40% growth.
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Increased Futures Activity
Recent data shows that in just one week, open interest for XRP futures escalated from $2.42 billion to $3.42 billion, marking a $1 billion rise, representing a 42% increase in active contracts.
Historically, simultaneous increases in price and open interest suggest an influx of new funds, indicating that traders anticipate further gains.
Price Comparison with Market Trends
XRP’s performance this past week has shown a significant advantage over the overall cryptocurrency market, which has experienced roughly a 12% rise. Achieving an increase of nearly 20% is noteworthy, particularly when most leading cryptocurrencies are reflecting modest double-digit increases.
Traders currently view XRP as a robust contender, leading them to place strategic bets.
Momentum Indicators Favor Growth
XRP is trading above its 10-, 50-, and 200-day moving averages. This trend suggests that both short- and long-term movements are favoring buyers. The relative strength index stands at 68, nearing the overbought threshold.
The potential for further price increases remains before hitting a peak. Additionally, the moving average convergence divergence has indicated a bullish crossover, suggesting ongoing upward momentum.
Growing Institutional Interest
Concurrently, the XXRP ETF has seen consistent inflows for five consecutive weeks. The previous week alone, it attracted $14 million in new investments, increasing from $10 million the week prior. The fund’s total assets are now approaching $100 million.
Despite carrying a 1.80% annual fee—nearly double that of certain Bitcoin ETFs—investors still recognize value in a product associated with XRP.
Chances and Financial Projections
According to predictive platforms, there is a 79% likelihood that the US SEC will soon approve spot XRP ETFs.
Analysts from a major financial institution estimate that these ETFs could bring in as much as $8 billion in their inaugural year—surpassing funds allocated to Ethereum following its September 2024 introduction. Such demand could propel XRP to even greater heights.
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Future Outlook and Risks
The positive price trajectory, increased open interest, and stable ETF inflows present a bullish scenario. Rapid price advancements might reverse if traders decide to secure profits; falling below the 50-day average could signal caution. Regulatory hurdles or a market-wide sell-off may also impede further growth.
Currently, XRP remains well-positioned above key averages with fresh investments flowing in. Many traders and institutions are leaning bullish. However, participants should monitor technical indicators and developments regarding ETF approvals closely.
If favorable conditions align, XRP may be poised for another significant surge. Conversely, a market cooldown or regulatory intervention could slow down the momentum.
Featured image from Gemini Imagen, chart from TradingView
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