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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, 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.