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A key metric of XRP has turned bullish today, with the XRP price already showing slight bullish momentum. According to CoinGlass data, the Open Interest (OI) of the Ripple-backed coin has surged 5.42% in the last 24 hours. As of now, the OI is standing at $652.66 million, hinting toward massive investor interest in the coin.
Open Interest is a crucial metric in the world of cryptocurrencies, and it is widely used in crypto derivatives trading. This includes options as well as futures contracts. OI basically shows the total number of open or active positions in a contract, such as derivative contracts. In simple terms, OI tracks the total number of active participants for a coin or a contract.
It excludes the total trading volume, helping crypto investors clearly understand if the money inflow is coming to the coin or somewhere else. The rise in Open Interest of XRP means that the $652.66 million have been injected into the coin in the form of open positions. This value does not include closed positions.
This metric helps in understanding current market sentiment. As OI is rising for XRP, it means that bullish sentiment is prevailing, and investors have started to inject more money onto the market. This increasing OI is crucial for the Ripple-associatede coin as the XRP price required support to initiate a rebound. However, only this will not be enough as there are other crucial factors in the market.
XRP price surges amid looming Fed decision
The price of XRP has surged 2.97% to $0.5863 during the past day. Interestingly, the price has increased 8.79% during the last seven days, showing the resurgence of bullish momentum for the coin. The coin has soared from $0.5260 to the current level during this time, which is a remarkable feat considering the broader sentiment in the crypto market.
However, the market is currently awaiting the U.S. Federal Reserve’s rate decision. Many are expecting that the Federal Reserve may cut interest rates tomorrow, September 18. Notably, the CME Group data is showing that there is a 62% likelihood of a 0.5% cut. If this happens, XRP and the broader market may see price rallies in the short term.