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XRP could be in the midst of a “leverage-driven” pump as the price of the asset soars to reach new yearly highs.
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Analysts warn Ripple’s native XRP (XRP) token could be experiencing a “leverage-driven” pump as the price of the asset soars to reach levels not seen since 2021.
In a Dec. 1 post to X, CryptoQuant analyst Maarten Regterschot noted that open interest in XRP — a measure of open derivatives positions — had spiked massively in the last 24 hours, warning that sharp upticks can result in a quick sell-off.
“Open Interest is up 37% already — watch for volatility. The last similar event led to a -17% drawdown,” said Maartuun.
“Stay sharp, manage risk accordingly.”
Source: Maarten Regterschot
According to data from CoinGlass, open interest in XRP has skyrocketed 30% in the last 24 hours to reach a total of $4 billion across major exchanges and trading platforms.
At the time of publication, XRP is changing hands for $2.39, up a staggering 68% in the last month, per TradingView data. It is up nearly 370% in the last month.
XRP has gained nearly 70% in the last week. Source: TradingView
XRP began rallying alongside major crypto assets, including Bitcoin (BTC) and Solana (SOL), following Donald Trump’s election victory on Nov. 6, but XRP has begun to outperform other major tokens.
Related: XRP price chases $2 after bull flag breakout leads to new 2024 highs
On Dec. 1, XRP flipped by Solana by market capitalization and has since surged past Tether (USDT) as well, making it now the third-largest crypto asset by total value.
XRP’s outsized price performance comes amid a growing number of key partnerships, new product developments from Ripple Labs, the possibility of an XRP ETF, and unsubstantiated rumors that Elon Musk would make a sizable investment into XRP and Ripple.
Asset manager 21Shares filed for an XRP ETF on Nov. 1, 2024 — raising investor expectations that the Securities and Exchange Commission (SEC) — which likely will be under new leadership in January 2025 — will approve the ETF applications.
Magazine: Crypto has 4 years to grow so big ‘no one can shut it down’ — Kain Warwick, Infinex
This article first appeared at Cointelegraph.com News
