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Derivative interest in XRP has surged to unprecedented highs as optimism of a price push to its all-time high intensifies.
XRP’s open interest is rising as the buzz around the ecosystem has continued to attract leveraged traders. On January 12, the open interest—a metric that shows the total market worth of open futures trades—has surged to a new all-time high.
The uptick comes as XRP price records an impressive but surprising spike in the past few days. For context, XRP surged 10% on Saturday amid the ongoing consolidation. Before this consolidation, XRP saw a massive 282% rise in November 2024, but open interest managed only a high of $4.29 billion.
However, the growing positive sentiments around the ecosystem have created liquidity, a component that is sooting to derivative traders as price looks to recover. This renewed interest also connotes heightened expectations of an imminent XRP price bounce.
Open Interest Reaches $5.42B
Data from Coinglass shows that open derivative interest in the XRP ecosystem reached an unprecedented high of $5.42 billion on Sunday, trouncing its previous record of $4.49 billion on January 7. However, it has consolidated to $5.37 billion as of today.
Further analysis of open interest distribution per exchange shows that Bitget interestingly leads the pecking order. The exchange accounts for over 25% of XRP’s open futures contract, with $1.38 billion.
Bybit and Binance occupy the second and third positions, respectively, with $1.16 billion and $1.08 billion. Meanwhile, Gate.io and OKX complete the top five, with open contracts worth $907 million and $279 million.
XRP Seeing Bullish Developments
Meanwhile, the increased interest in XRP culminates in the latest buzz around its ecosystem. For context, Ripple recently launched the Ripple-USD (RLUSD), a native stablecoin that will expand settlement options on the XRP Ledger.
Furthermore, the XRP spot exchange-traded fund (ETF) buzz gained momentum last week. Ripple president Monica Long stated that the investment vehicle offering alternative exposure to the XRPL native token would follow the Bitcoin and Ethereum ETFs.
Additionally, the meeting between Ripple’s CEO Brad Garlinghouse, CLO Stuart Alderoty, and US President-elect Donald Trump sparked traction towards XRP. Although the meeting’s details remain undisclosed, the crypto community saw the closed-door discussion as a bullish indicator.
Most importantly, the open interest uptick followed XRP’s impressive performance over the weekend. For context, the coin surged a combined 13% on Friday and Saturday, contributing immensely to the explosive derivative traction.
XRP Poised for New All-Time High
Meanwhile, market experts view surging open interest as an indication that the market is interested in an asset, which could spell bullish momentum. Moreover, the long/short ratio of 1.95 on Binance and 1.64 on OKX indicates traders are betting on higher prices for XRP.
However, XRP still trades within the micro range analyst Egrag Crypto identified. His analysis noted that proceedings remain unchanged until XRP breaks through the upper range at $2.9000.
He asserted that breaking past the crucial resistance would ensure XRP retests its all-time high of $3.5505. In the meantime, the digital asset trades at $2.4516, up 18% year-to-date.