As XRP Crosses $0.65, XRP Open Interest Sees Significant Surge Toward $1B

XRP has begun recording a rapid surge in open interest (OI), as market participants troop into the futures market amid the recent recovery of the $0.65 price territory.

XRP’s open interest saw an impressive surge to a yearly peak of $1.19 billion on July 20 following the pivotal ruling in the SEC lawsuit on July 13. The verdict declared XRP a non-security, triggering massive global demand for the crypto asset. This demand resulted in a spike in OI.

Drop in XRP Open Interest

However, XRP’s OI tumbled as the cryptocurrency dropped from a $0.93 high on July 13. Data from crypto analytics resource Coinglass reveals a steep decline in open interest below $800 million amid an XRP price decline to $0.73. 

As XRP found strong support at $0.71 in late July and hedged against further declines, interest resurfaced, with OI witnessing a slight uptick. However, August came with a massive price correction for XRP, and this impacted open interest, leading to a drop to $434 million on Aug. 19.

XRP’s OI rallied back above $800 million in mid-November, when XRP surged past $0.72. However, following a subsequent drop, OI has remained below the $800 mark since then despite occasional upswings and dips, aligning with XRP’s price movements. 

Despite the ongoing market-wide rally, XRP has underperformed compared to other tokens. This has kept demand low, with OI witnessing intermittent declines in the wake of the price outlook.

A Recent Uptick Amid Surge Above $0.65

Nonetheless, following a recent slump to $643 million on Dec. 20, XRP open interest has recorded a noticeable uptick. Data from Coinglass confirms this bullish turn of events, revealing that OI has surged 7.68% over the past 24 hours to $788.7 million as of press time.

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At this rate, the metric looks poised to reclaim the $1 billion mark last recorded in July. However, for this feat to materialize, XRP needs to sustain the recent price resurgence to trigger a renewal of investor interest. 

Open interest is the total outstanding or open contracts for a particular financial instrument, such as futures or options. It represents the total number of contracts that have not been offset by an opposing trade or fulfilled by delivery.

When open interest surges, it suggests that new money is flowing into the market, indicating increased investor interest. This could imply a strong trend if accompanied by price movement, as a rising open interest often suggests a consensus among market participants.

Interestingly, the recent surge in XRP open interest follows a price resurgence that saw the token surge past $0.65 for the first time since Dec. 11. XRP rallied to a high of $0.6584 today but has since relinquished the position, currently trading for $0.6364.

Coinglass data further confirms a similar surge in the volume of XRP derivatives, indicating a 7.91% rise to $1.7 billion over the last 24 hours. Most of the volume and OI have come from Binance, Bybit, Bitget, and OKX, suggesting their leading positions for XRP derivatives trades.

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Source: https://thecryptobasic.com/2023/12/28/as-xrp-crosses-0-65-xrp-open-interest-sees-significant-surge-toward-1b/?utm_source=rss&utm_medium=rss&utm_campaign=as-xrp-crosses-0-65-xrp-open-interest-sees-significant-surge-toward-1b