Originally published on: December 02, 2024
Ripple’s XRP token is making headlines as it experiences a significant surge in price, leading analysts to warn of a possible “leverage-driven” pump. The price of XRP has reached levels not seen since 2021, with open interest in the token spiking in the last 24 hours.
CryptoQuant analyst Maarten Regterschot highlighted the surge in open interest, stating that sharp upticks could result in quick sell-offs. With open interest up 37%, he emphasized the need to stay sharp and manage risks accordingly to avoid potential volatility.
CoinGlass data shows that open interest in XRP has skyrocketed by 30% in the last day, reaching a total of $4 billion across exchanges and trading platforms. At the time of publication, XRP was trading at $2.39, marking a remarkable 68% increase in the last month and nearly 370% over the past year.
XRP’s recent rally has outpaced other major cryptocurrencies like Bitcoin and Solana, leading to its flip of Solana by market capitalization and surpassing Tether to become the third-largest crypto asset by total value.
The impressive performance of XRP is attributed to key partnerships, new product developments from Ripple Labs, rumors of a potential investment by Elon Musk, and the filing of an XRP ETF by asset manager 21Shares. Investors are optimistic that the SEC will approve the ETF applications, potentially boosting XRP’s value further.
As the crypto market continues to evolve, XRP’s rise showcases its resilience and growing influence in the industry. Stay updated on the latest trends and insights by subscribing to our Crypto Biz newsletter for valuable information every Thursday.