XRP is seeing a major resurgence in the derivatives market, with open interest soaring to $4.3 billion, signaling renewed market momentum.
According to data from Coinglass, XRP’s open interest—representing the total number of outstanding futures contracts—has spiked after a temporary decline. This reflects a growth in trading activity.
XRP Open Interest Spikes After 50% Initial Dip
As of mid-January, XRP’s open interest was around $7.86 billion. However, it plummeted sharply by half to around $3.4 billion in the first week of February. This massive drop followed XRP’s price dip to near $1.70 at the time.
Meanwhile, recent data shows a major rebound, with the figures reaching $4.30 billion as of February 16. At press time, XRP’s open interest is maintaining this level as it hovers around $4 billion.
This renewed trader engagement suggests heightened speculative interest in XRP as its price rebounds. In particular, the weekend uptick in XRP open interest coincided with its price reaching a multi-week high above $2.83.
This development has attracted significant attention from market watchers in the XRP community, who see the rising open interest as further signs of major price action for XRP.
“XRP Open Interest is pumping up again after dropping out… We’re ready to go,” remarked community figure Chad Steingraber.
Will XRP Price Soar Higher?
Steingraber reminded community members that the last time XRP saw a massive spike in open interest coincided with a historic price run.
Specifically, between January 13 and 17, XRP’s open interest reached all-time high figures near $8 billion. During this time, the price of XRP traded at a seven-year high, re-entering the $3 range for the first time since 2018.
The token showed determination to reclaim its all-time high, but the bulls failed to sustain the momentum. Accordingly, XRP’s price retraced, revisiting lows around $1.70.
However, with XRP now re-approaching the $3 mark, speculative interest in the coin is growing again as traders anticipate further promising price action.
Meanwhile, the XRP long/short ratio over the last 24 hours stands at 0.9109. This means short positions currently outnumber long positions in XRP derivatives trading over the past 24 hours.
In other words, there are approximately 1.1 short positions for every long position. Specifically, this suggests a slightly bearish sentiment in the derivatives market, as more traders expect XRP’s price to correct.
At press time, XRP’s price has dipped by 3.85%, trading at $2.66. This slight dip is also reflected in the open interest, which shows a 6% drop to $4.07 billion from the higher $4.3 billion recorded yesterday.
Notably, the latest dip comes on the back of a cautious sentiment in the market as Bitcoin exhibited mild bearish volatility over the past day.
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