XRP’s market activity has seen a dramatic surge as the cryptocurrency records a sharp increase in both price and trading volume. Open Interest (OI) in XRP futures has spiked by over 20% since New Year’s day, hitting the $2.66 billion mark for the first time in six days. This development coincides with XRP’s ongoing price rally, which has pushed the asset back into the $2.42 price level.
XRP leads the broader market recovery
The latest rebound in XRP price comes amid a broader market recovery, but the XRP Ledger (XRPL) native token appears to be leading the charge. Over the past 24 hours, XRP has surged by over 13%, retesting the $2.46 resistance level.
Accordingly, XRP’s market capitalization has surged above $140 billion at the time of writing, positioning it as the third-largest cryptocurrency by market cap. These positive developments and rising momentum builds on XRP’s historical close above $2 at the end of 2024, which marked a critical moment in the asset’s price history.
Interestingly, XRP’s upward trajectory has reignited investor interest, with bullish indicators like rising Open Interest driving increased activity in both XRP spot and futures markets.
Read also: XRP gains over 11% as Ripple unlocks 500 million XRP tokens.
XRP Open Interest surges 38% in 4 days
Open Interest (OI) is a critical metric in futures and options markets that represents the total number of outstanding contracts that have not yet been settled. In simpler terms, it indicates the number of active positions held by traders in a particular market.
Unlike trading volume, which measures the number of contracts bought or sold within a specific period, Open Interest provides insight into the level of market activity and liquidity over time. A rise in OI suggests increased trading activity and higher liquidity in the market, which often accompany significant price movements. Conversely, declining OI can signal waning interest or profit-taking.
Read also: Understanding the importance of on-chain and trading volumes in crypto trading
Data from Coinglass reveals a significant increase in XRP Open Interest, which reached $2.66 billion on Saturday—a 38% surge from $1.93 billion recorded on 1 January, 2025. This marks the first time since December 2024, that XRP’s Open Interest has crossed the $2.6 billion threshold.
XRP’s latest OI peak coincides with heightened bullish momentum, reflecting growing confidence among traders and investors. Historical data shows that spikes in XRP Open Interest often correlate with price surges. For instance, a 46% increase in OI on 2024 Christmas Day was accompanied by a rally that pushed XRP above $2.32. However, as OI dropped following the holidays, XRP’s price also declined, mirroring broader market corrections.
Read also: Implications as XRP Ledger reduces base reserve from 10 XRP to 1
Rising XRP spot volume
In addition to futures activity, XRP’s spot market volume has experienced a substantial surge. Data reveals that XRP’s 24-hour trading volume increased by 153% on 2 January 2025 to reach $10.97 billion. The last comparable peak occurred on 22 December 2024, when XRP prices hovered around $2.29.
However, at the time of writing, XRP boasts a 24-hour trading volume of $4.8 billion per Coingecko data. Despite representing an 18% decline from the volume recorded the previous day, the recent uptick in XRP spot volume and Open Interest indicates renewed interest in the cryptoasset as traders and investors capitalize on its bullish momentum. Contributing to this bullish momentum is the recent launch of the Ripple stablecoin, RLUSD.
While these positive developments suggest that XRP could be on the cusp of further gains in the coming months, several bearish indicators warn of potential 25% price decline.
Read also: Ripple and XRP Explained
Ndianabasi Tom A Petroleum Engineering degree holder, Ndianabasi’s interest since 2018 has been studying the ever-growing field of blockchain and cryptocurrency, keenly evaluating the innovation, exploration, and expansion of this field locally and globally. The founder of Nitadel a media platform, Ndianabasi has been a Writer at Crypto Asset Buyer (CAB) since 2021. When he is not drilling resources in the blockchain and cryptocurrency field, Ndianabasi is singing, reading, watching crime movies, or playing football.
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