XRP surged 12% in 24 hours and 27% over the past week, outperforming major cryptocurrencies as institutional and speculative trading reached fever pitch.
Daily trading volume and open interest in XRP derivatives hit multi-month highs, with open interest climbing to $7.2 billion, according to market data. XRP was trading at $2.97 on Monday morning, while Bitcoin broke above $122,000, a dramatic increase from $112,000 on Wednesday.
The rally signals renewed confidence in the cryptocurrency that has weathered years of regulatory uncertainty. Leverage levels indicate strong trader conviction, suggesting the momentum could persist.
Ripple’s partial victory over the SEC in August 2024 restored investor confidence and set the stage for the recent surge in its value. The legal clarity helped financial institutions embrace the XRP Ledger, driving demand for the underlying token, industry observers noted.
The broader crypto market’s stability, including gains in Bitcoin, has sustained positive sentiment around XRP. The correlation between major cryptocurrencies has worked in XRP’s favor as institutional investors return to digital assets.
Grayscale’s addition of XRP to its Digital Large Cap Fund marked a significant institutional endorsement. Ten pending XRP spot ETF applications have created a bullish narrative among investors, according to analysts.
Ripple’s application for a U.S. bank charter has fueled additional optimism. The move signals the company’s ambition to become a regulated financial institution, which could unlock new use cases for XRP.
Speculation around the imminent approval of an XRP spot ETF has significantly increased retail and institutional interest. XRP’s relisting on Robinhood has boosted both trading activity and liquidity, according to market watchers.
Large investors, commonly referred to as “whales,” have been accumulating XRP positions during the recent price surge. Heightened trading by South Korean market participants has also contributed to the rally, adding to global demand.
The recent uptrend in both XRP and Bitcoin has been characterized by strong bullish sentiment across the cryptocurrency sector. Analysts suggest that XRP may follow Bitcoin in retesting its all-time highs, with technical patterns supporting continued upward momentum, according to experts.
Rising open interest reinforces expectations that the current rally has room to run. Still, cryptocurrency markets remain volatile, and past performance doesn’t guarantee future results.