Outside Source
TL;DR
- CryptoQuant warned that leverage positions are a big driver behind XRP’s price movements, which has increased the asset’s open interest.
- This comes amid significant volatility that hit Ripple earlier today after President Trump signed an executive order focusing only on Bitcoin.
Recall the massive wave to the upside that XRP experienced on Sunday when US President Donald Trump namedropped the asset, alongside a few others, to be potentially included in the country’s strategic crypto reserve. Ripple’s cross-border token exploded by double-digits and tapped $3 for the first time in a few weeks.
However, the momentum was short-lived, and XRP quickly dropped to $2.2. Nevertheless, it had recovered some ground and stood at $2.65 late last night ahead of Trump’s executive order that says the country will focus solely on Bitcoin, but it failed to mention any other cryptocurrency.
XRP’s price tumbled by 9% immediately, going down to $2.37 before it bounced off to its current level of $2.5.
At the same time, CryptoQuant warned that the open interest for the third-largest digital asset has increased by over 5.5% within a short timeframe, which suggests a price move ‘fueled by leverage.’ The analytics firm added that XRP’s upcoming price movements could be ‘wild’ and advised traders to manage their risk.
Open interest for XRP is up 5.63%, signaling a price move fueled by leverage. Elevated risk in the market.
Leverage cuts both ways—stay sharp. pic.twitter.com/OQ53hl7W5k
— CryptoQuant.com (@cryptoquant_com) March 6, 2025
The controversy around the US crypto reserve continues but many analysts believe that XRP’s price could be poised for a massive rally and it’s only a matter of time before it breaks its 2018 all-time high of $3.4 (according to CoinGecko). Some went even further, predicting outrageous price surges that could drive XRP’s price to double- and even triple-digit territory.
This article first appeared at CryptoPotato
