Ripple’s XRP token saw its open interest soar to nearly $1 billion over the weekend, with its price steady around $0.61 at press time, according to data from CoinGlass.
XRP’s price action has differed notably from the top two cryptocurrencies. While Bitcoin and Ethereum have both dipped by 1.5% and 2.3% respectively over the past week, XRP has defied this trend, climbing 4.1% within the same timeframe. Several factors could be driving this counter-trend performance.
One significant development is the recent launch of a closed-end XRP Trust by digital asset manager Grayscale Investments in the United States. This new offering allows institutional investors to gain exposure to one of the top ten cryptocurrencies by reported market cap. The Grayscale XRP Trust has surged by more than 11% within a week, indicating robust institutional demand for this seventh-largest crypto-asset. There is speculation that the launch of the Trust could pave the way for the approval of an XRP exchange-traded fund (ETF) by the U.S. Securities and Exchange Commission (SEC). If approved, XRP would join an elite group of digital assets with its own ETF.
Additionally, the Ripple ecosystem is abuzz with anticipation over the upcoming launch of its USD-pegged stablecoin, RLUSD. Crypto analysts are closely monitoring the stablecoin, which is currently in private beta testing on both the XRP and Ethereum networks. Recent updates indicate that 480,000 RLUSD was minted at RLUSD Treasury, highlighting active development. The stablecoin is expected to be integrated into Ripple’s cross-border payment services and could also be utilized in decentralized finance (DeFi) protocols across various blockchains.
Data from CoinGlass indicates that XRP’s open interest surged beyond $1 billion over the weekend, before settling at around $945 million at press time. Spot trading volume in the last 24 hours sits slightly above $2 billion. A climb in open interest generally signals increased market activity and suggests that more contracts are being opened, potentially indicating expectations of significant price movements. Open interest had previously reached around the $1 billion mark in March 2024.
Crypto analysts remain divided on XRP’s price trajectory. A recent legal victory for Ripple Labs against the SEC has provided a bullish sentiment among altcoin advocates. One analyst believes that if XRP can overcome key resistance levels, it could surge to between $16 and $20. Conversely, another analyst, Carl Runfelt, has pointed to a multi-year bullish triangle pattern on XRP’s chart. He asserts that if XRP breaks out from this pattern and goes parabolic, its price could increase by more than 200% within weeks. However, XRP’s failure to decisively break the $0.60 resistance could lead to a retest of the $0.55 support level. Currently, XRP is trading at $0.61, down 1.6% in the past 24 hours.
