XRP, the cryptocurrency associated with Ripple, has recently achieved a remarkable milestone, with its futures open interest soaring to an unprecedented $3.91 billion. This significant increase in trading activity is indicative of a growing sense of investor confidence in XRP, as reported by Wu Blockchain on X, utilizing data from CoinGlass.
The surge in XRP futures open interest is primarily attributed to three leading exchanges. Binance tops the list, commanding 535 million XRP contracts, which constitutes approximately 32.04% of the total open interest. Following closely is Bybit, holding 524 million XRP contracts, or 31.27%, while Bitget ranks third with 327 million XRP contracts, making up 19.55% of the overall market.
This remarkable uptick in activity not only reflects the robust engagement from the XRP community but also signals heightened interest from both retail and institutional traders. Several factors are driving this trend, including positive legal developments surrounding Ripple, the introduction of its stablecoin RLUSD, and the expanding use of XRP in cross-border transactions.
The derivatives market for XRP has witnessed significant movements, with trading volume skyrocketing by an astonishing 289% to reach $60 billion. Open interest has also seen a notable increase of 17.5%, bringing it to $3.90 billion. In addition, options trading has gained traction, with volume rising by 17.41% to $4.01K and open interest climbing 16.20% to $992.33K.
Analyzing the market sentiment, the 24-hour long/short ratio currently stands at 0.9932, suggesting a nearly balanced outlook among traders. On Binance’s XRP/USDT trading pair, the long/short ratio for accounts is recorded at 1.592, while the ratio on OKX for XRP is slightly lower at 0.94. Notably, top traders on Binance exhibit a stronger inclination towards long positions, with account and position ratios at 1.949 and 2.723, respectively.
The liquidation data reveals substantial trading activity, with $1.72 million liquidated in the last hour alone. Over a four-hour period, liquidations totaled $12.52 million, while in 12 hours, the figure rose to $37.45 million. In a striking 24-hour span, liquidations reached a staggering $70.03 million, with shorts accounting for $44.41 million of the total, compared to $25.62 million from longs.
As XRP continues to gain momentum, market analysts are optimistic about its price trajectory. Predictions suggest that XRP could potentially reach the $3 mark in the upcoming weeks. Price forecasts indicate that XRP may trade within a range of $1.59 to $4.37, with an average target set at $2.72. Some analysts even project prices could soar as high as $5.34 by early 2025, influenced by potential political shifts, including a possible new administration under Donald Trump.
This rapid growth and increasing interest in XRP underscore its evolving role in the cryptocurrency landscape, as both individual and institutional investors continue to explore its potential.
