cryptopolitan.com
$XRP saw a spike in open interest, with inflows of speculative investment on Binance. Despite long liquidations and market risk, traders still rebuilt long positions.
$XRP trading on Binance revived after a period of relative weakness. Open interest jumped specifically on Binance, though remaining low on other markets.
Over $264M in open positions were opened on Binance, up 14.8% in the past 24 hours. $XRP traded at $1.34 after the latest market downturn, showing long positions were still threatened by liquidations.
The recent market moves of $XRP are mostly based on narratives. The XRPL network only carries around $46M in value locked, with minimal fees produced. Despite this, Ripple still positions itself as one of the builders of the future of crypto.
Ripple’s efforts to build a payment system are ongoing, and the company may not be affected by the new CLARITY Act. Ripple’s official stablecoin still carries $1.41B in total market cap, down from $1.58B as of March 7. The stablecoin is actively traded on Binance, adding to the popularity of $XRP.
Why is $XRP gaining long positions?
The recent spike in open interest shows $XRP is one of the fast-reacting assets, expecting a breakout to a higher price range. $XRP still has blue-chip status and a significant presence on social media, allowing the asset to survive the general loss of interest in altcoins.
The mindshare of $XRP also rose by over 64% in the past day, to 1.5%, surpassing other altcoin projects. Unlike other legacy assets, $XRP still sparks hopes of breaking out to a higher price range.
$XRP long positions go as low as $1.25, as more cautious traders bet on the asset’s usual sideways trading. The $XRP community is still showing confidence in the asset’s future, even during the current bear market.
Can $XRP rise on a short squeeze?
$XRP traders have been mostly cautious in shorting the asset due to its track record of sudden expansion.
This time, only around 24% of traders hold short positions, while others seek a price range for going long with a lower risk of liquidations.
One of the drivers for $XRP expansion is a potential short squeeze. The latest expansion of long positions also showed a concentration of short open interest on Binance.
Based on the liquidation heatmap, an accumulation of short open interest is the strongest at $1.37. Currently, those positions, reporting $1.04B in open interest, are in the money, benefitting from the $XRP slide. The position is also a potential target for liquidations, leading to an $XRP recovery.
On Hyperliquid, the predictions on $XRP are the opposite of those on centralized exchanges. $XRP is among the most widely shorted assets, with over 63% of whales holding short positions. The biggest short position had $10M in notional value and over $378K in unrealized gains.