XRP Open Interest Reaches New All-Time High: What Does it Mean for Ripple’s Price?

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As a seasoned crypto investor who has weathered numerous market cycles, I find myself intrigued by the recent surge in open interest for XRP. Having closely followed the trajectory of this token since its inception, I must admit that the current situation feels reminiscent of the wild west days of Bitcoin back in 2017.

The open interest for the world’s sixth-largest cryptocurrency has skyrocketed to an all-time high of roughly $1.8 billion, according to CryptoQuant’s data.

This is in response to the latest updates concerning the firm associated with the token, along with increasing optimism about potential shifts in the U.S. regulatory landscape.

XRP OI at New Peaks

As a researcher, I’ve recently analyzed the insights shared by maartunn from CryptoQuant, and I’d like to highlight some intriguing trends that have emerged in the market. Notably, there has been a significant surge in both the value of XRP and its open interest as of late.

The graph you see shows a correlation between XRP and another metric since the U.S. elections three weeks ago. Initially, XRP was grappling below $0.6 with an Open Interest (OI) of approximately $500 million. In the subsequent weeks, Ripple‘s token soared by more than 100% and sometimes even 300%, reaching over $1.6 for the first time in more than three years, due to speculation that SEC Chair Gary Gensler might step down in January 2025.

Over the weekend, the open interest spiked up to an all-time high of $1.8 billion, following a comparable path.

Beyond the optimism generated by Gensler’s announcement about a potentially friendlier regulatory landscape for cryptocurrencies like XRP, maartunn highlighted two additional factors driving the increasing Open Interest (OI).

2) Election Victory Impact: The recent win of Donald Trump has sparked optimism, as people anticipate more regulation-friendly policies towards cryptocurrencies, fueling increased curiosity and investment in the market.

3) Anticipation for XRP ETF Approval: Institutional investors are showing interest in Ripple (XRP), as asset managers have submitted applications for an XRP-based Exchange Traded Fund. The potential departure of Gensler may increase the chances of approval, fueling speculation.

During the electoral process, Trump advocated for cryptocurrencies, a stance that is thought to have contributed significantly to his substantial win. He’s made various pledges about the sector, promising to foster and nurture it, which has ignited enthusiasm and boosted the current market surge.

Conversely, transformations at the SEC sparked a flurry of applications for crypto ETFs, with XRP often cited as a potential token to emulate the path paved by Bitcoin and Ethereum.

What About XRP ATH?

As a crypto investor, I’m elated about the 180% surge XRP has seen over the past month, taking it up to around $1.5. However, this figure pales in comparison to its All-Time High (ATH) of $3.4 reached back in early 2018. This implies that XRP needs to more than double its current value to reclaim those heights, a significant leap indeed.

Although it seems quite demanding, numerous cryptocurrency experts are hopeful that XRP can meet this expectation in the current phase, particularly if the lawsuit with the SEC swiftly and advantageously wraps up post-Gensler’s departure.

Some members of the XRP community have boldly projected potential prices for a single coin, with estimates ranging as high as $10 or even $30.

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2024-11-25 16:31