Something Big is Brewing in XRP Futures, Analyst Shares How to Play the Trend

The XRP futures trading scene is witnessing an interesting development, and market analyst Cas Abbé has shared how to play the trend.

Notably, XRP has been steadily climbing since early August, holding its ground even during brief pullbacks. XRP pushed past the $3 mark but has continued to battle the bears at this level. Amid this price action, XRP futures trading recently exploded, confirming heightened speculation and liquidity in the market.

Something Big Brewing in XRP Futures Trading 

Market analyst Cas Abbé recently highlighted this, calling attention to the state of XRP futures trading and shared how he plans to play the trend. 

- Advertisement -

He pointed out that in the past 24 hours, XRP futures trading volume soared 208% to $12.4 billion, surpassing Solana’s $9.6 billion over the same period. Abbé sees this as a sign of massive capital pouring into leveraged trades.

He noted that open interest has jumped 15% to $5.9 billion. Notably, this level of open interest often leads to strong moves in either direction. Right now, funding rates sit slightly positive at 0.01%, meaning long traders are paying shorts. Abbé suggests this is proof that the crowd is leaning heavily bullish.

While strong bullish sentiment can keep prices rising, the market analyst warned that it also creates risk. He explained that markets often follow a familiar pattern in these situations: hype builds, prices push higher, liquidity pools form below the market, and then one sharp move can wipe out overleveraged long positions.

How to Play the Trend

The market commentator noted that this kind of shakeout happens often when too many traders pile in without proper risk control.

Despite his cautious stance, Abbé confirmed that he was not bearish on XRP. Specifically, he believes momentum remains strong and sees a break above $3.4 as a trigger for another leg higher in the short term. At press time, XRP changes hands at $3.26, up 2.44% today. It needs a further 4% push from here to overcome $3.4.

However, for his strategy, Cas Abbé revealed that he typically avoids buying during rapid rallies. Instead, he would wait for a pullback into a solid support zone before entering the market. Notably, this gives him a safer setup for the next move up.

In addition, Abbé also stressed that he pays attention to liquidation clusters as part of the strategy. For context, these clusters are price levels where a large number of traders risk forced closures if the market moves against them. The analyst tracks these areas to see where sudden volatility might hit and position himself accordingly.

In his conclusive remark, Abbé noted that with $5.9 billion in open interest within the XRP futures trading scene, the market is on the verge of seeing big swings. He suggested that investors should prioritize risk management over chasing every green candle. Earlier this year, he identified three catalysts that could push XRP to $10.