XRP Futures Activity Spikes in the Past 24 Hours: Here’s What It Means for Prices
On-chain leverage activities around XRP spiked in the past 24 hours amid its rally. Are there further implications for its prices?
XRP rallied extensively in the past 24 hours, spurred by several catalysts, including bullish ecosystem development. Specifically, the US SEC and Ripple officially ended their years-long legal battle yesterday, pushing XRP over 11% from $2.99 to $3.38 today before consolidating around the price level.
XRP 24-Hour Volume Spikes 208% to $12.4B
Meanwhile, Glassnode highlighted in a recent tweet that the XRP futures activities spiked with the price uptick. This occurred as market users crave leveraged exposure to the token’s rallying price. The 24-hour volume grew by 208% to $12.48 billion, marking the largest change among major assets in the timeframe.
XRP Open Interest on the Rise
Interestingly, the open interest—a metric that tracks the value of open futures positions on an asset—also climbed with prices and volume. OI rallied 15% to $5.9 billion, with a positive funding rate of 0.01% suggesting heavy long positions. Glassnode highlighted that this could lead to an XRP liquidation spike if prices retrace to lower levels.
CryptoQuant analyst JA Maartunn further shared a rising XRP OI in his tweet today, identifying a 22% surge in the last 24 hours. Coinglass also confirmed this, displaying that it spiked 17% to $8.94 billion.
Remarkably, XRP’s OI faced a sharp fall as July wound down
Remarkably, XRP’s OI faced a sharp fall as July wound down, after it surged to an all-time high of $11.2 billion on July 18. Notably, the OI high coincided with its rally to a multi-year price high of $3.66. However, the aggressive futures interest dwindled quickly, with price momentum following suit. It dropped over 37% to $7.05 on August 3, aligning with XRP’s dump below the $3 price mark.
Now, with leveraged interest rekindling again, XRP’s price may be on the positive receiving end. In the meantime, XRP trades at $3.31, down slightly from its intraday high of $3.38.
Moreover, with the regulatory hurdle finally behind XRP, analysis suggests XRP could rally to as high as $10 this year. However, some others believe XRP could go higher with a targeted rise to $30 this bull cycle.