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XRP Bullrun: You Are Missing True Rally

Thu, 07/20/2023 - 11:11
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Arman Shirinyan
XRP's price rally is impressive, but true show is happening in background
XRP Bullrun: You Are Missing True Rally
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XRP has recently gained significant attention due to a robust price rally, while the more fundamental shift remains unnoticed by many. The burgeoning open interest (OI) in XRP futures contracts provides a clearer picture of ongoing market sentiment and the real potential for further growth.

Open interest refers to the total number of outstanding derivatives contracts, such as futures and options, that have not been settled. Increasing open interest represents new money flowing onto the market and suggests that the current trend is gaining momentum. For XRP, the rise in OI indicates that traders are actively participating in the market, which could potentially signal a more substantial bullish run.

However, even as open interest on XRP grows, the cryptocurrency is rapidly losing trading volume. This decrease in volume could be due to market participants reassessing their positions after the initial excitement surrounding the recent court decision favoring Ripple Labs. XRP's price rally may have been fueled by retail traders, but the decrease in volume suggests that institutional investors remain cautious.

Ripple CEO Hails Team's Efforts Following Crucial Court Decision

Institutional investments are often seen as a critical catalyst for sustained price rallies on the cryptocurrency market. These large-scale investors can provide substantial liquidity and contribute to overall market stability. As it stands, XRP has yet to attract significant institutional interest, which may be a limiting factor in its capacity to enter a true bull run.

While the price surge has been impressive, the more substantial story lies in XRP's rising open interest. This could potentially indicate that a broader, more sustainable rally could be on the horizon. That said, market participants should be mindful of the decreasing trading volume and the lack of substantial institutional inflows.

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.