XRP, the cryptocurrency backed by Ripple Labs, is making headlines as its price reaches levels not seen in three years. But the excitement isn’t just about its rising value. The open interest on futures for XRP has risen to a record high of almost $2.10 billion, indicating increased activity from traders. Some market experts even believe that XRP could follow the same pattern as 2018, when it skyrocketed to $3.
Record-breaking futures activity
Over the past week, XRP has risen over 97%, standing out as one of the best-performing assets in the crypto market. Despite a slight dip from the $1.25 peak, XRP continues to show strong momentum.
The rise of XRP can also be seen in futures trading. Open interest hit a new record on Saturday, with more than 2 billion tokens worth nearly $2 billion in futures contracts. This shows that more traders are getting involved and expecting bigger price movements.
Meanwhile, Nick Forster, the founder of a DeFi protocol, said: “The rise in open interest on XRP futures shows that more traders are interested, which often means they expect prices to rise.”
However, not everyone agrees. Data shows that 51% of traders are betting on falling prices, giving mixed opinions on the future of XRP.
Ripple’s victory over SEC
Ripple’s legal battles have significantly affected XRP’s recent success. In July 2023, a federal judge ruled that XRP is not a security when sold to retail investors. This decision brought much-needed clarity, removing years of uncertainty surrounding XRP.
Although Ripple was fined $125 million for institutional sales, the ruling was seen as a major victory for the company and its community. The SEC may have appealed the decision, with a deadline of January 2025.
Can XRP repeat its 2018 rally?
XRP’s recent price movements remind many of its historic rally in 2018, when it rose to $3. Bullish chart patterns, such as a symmetrical triangle formation, have fueled speculation that XRP could reach these heights again.
However, analysts warn that a drop below $1.1380 could trigger a correction, with key support levels at $1.05, $0.93 and $0.88.
With growing trading activity, legal clarity and technical bullish signals, the future of XRP looks promising, but the road ahead will likely be a mix of excitement and challenges.
Credit : coinpedia.org
