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XRP, the third largest cryptocurrency by market capitalization, is seeing a spike in open interest, with traders making significant moves in the last 24 hours.
According to CoinGlass data, XRP’s open interest has skyrocketed 12%, surpassing the $4 billion mark. This uptick coincides with the overall crypto market's rebound, with XRP experiencing double-digit increases.
XRP open interest is the total number of outstanding XRP futures or options contracts on the market. It represents the amount of money invested in XRP derivatives at any particular time. When traders enter futures or options contracts, open interest rises. As contracts close or expire, open interest diminishes.
Tomiwabold OlajideThis key metric can provide insight into the sentiment of market participants; for example, rising open interest may indicate a growing bullish sentiment among traders, while falling open interest may indicate increasing bearish sentiment.
With XRP’s open interest surpassing $4 billion in the last 24 hours, market momentum appears to be building.
XRP price rebounds
The increase in open interest is consistent with XRP's recent price rebound. After experiencing selling over the weekend, XRP has seen a sentiment shift, with traders betting on further gains.
XRP has risen by more than 12% in the last 24 hours, swinging from a low of $1.72 the day before to a high of $2.8 on Tuesday, marking a 55% surge. The current spike in XRP matches similar moves on the broader crypto market.
Crypto majors have risen by up to 20% in the last 24 hours, following Monday's $2.2 billion sell-off, which proved advantageous for risk-takers. Bitcoin surged past $102,000 before reverting to its current level above $100,000.
XRP's latest recovery from its Feb. 3 lows saw it rise to close above the 50-day simple moving average (SMA) at $2.62, a key level that has held up its price since it embarked on a bull run since November. Bulls are struggling to flip this level back into support, and if they are successful, XRP may aim for a retest of $3. On the other hand, renewed selling pressure could push XRP back below the $2 mark.
Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
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