Can Ripple (XRP) Price Reach $1 in 2024? –This Indicator Offers Insights

Insights:

• Ripple (XRP) price hit a monthly peak of $0.69 on Saturday, Dec 9 as the bulls begin to deploy a more aggressive trading strategy.
• While the 12% weekly price gains in the spot markets have drawn attention, a closer look at the current market data shows a more aggressive trading pattern among derivatives traders. 
• Open Interest-Weighted Funding Rate (OIWFR), Basis Ratio, and rising Spot volumes, all point toward a potentially more aggressive XRP price action ahead of 2024.

Ripple (XRP) price hit a monthly peak of $0.69 on Saturday, Dec 9 before entering a mild correction toward $0.65 at press time on Sunday Dec 10. But with the bulls now trading more aggressively, vital derivatives data points suggest that XRP price could edge toward $1 ahead of 2024. 

Bullish XRP Traders are Paying Record Fees to Keep LONG Positions Open 

XRP has endured a volatile price action in recent weeks, while Bitcoin (BTC) and other prominent altcoins like Solana (SOL) raced to new 2023 peaks. Despite the subdued price performance in the spot markets, XRP bullish traders have deployed a more aggressive approach in the derivatives markets.  

In confirmation of this stance, XRP Funding Rates have hit historic peaks, amid the near-frenetic price fluctuations in December. 

The chart below illustrates that XRP Funding Rate hit 0.053% on Saturday, the highest since in 2023 so far, according to data culled from Coinglass, a prominent derivatives market data analytics platform. 

A closer look at the chart shows that it has trended above 0.02% for the better part of December. 

This means that the peak reached on Saturday was not a one-off spike, rather a signal of a prolonged aggressively bullish trading outlook among the XRP perpetual futures traders

For proper context, the Perpetual Funding Rate is a derivatives trading metric that represents the cost associated with holding a perpetual contract position over an extended period.

It essentially serves as a mechanism to balance prices in the spot and futures markets by incentivizing traders on the dominant (long or short) to pay the traders on the opposing side.

If the perpetual contract is trading at a premium to the underlying asset’s spot price, traders holding long positions pay a “funding fee” to the traders with short positions. 

Hence, this spike in XRP funding rate to a 2023 peak means that, derivatives traders are now paying record fees to keep their LONG positions open. 

Can XRP Price Reach $1 in 2024?

Currently, XRP price looks set to reach the $1 territory in 2024. The spikes in XRP funding rates is a strong indication that the bullish traders are willing to pay top dollar to keep their LONG positions, with growing confidence that XRP price will remain in an uptrend. 

If the bulls continue trading aggressively in the derivatives markets, its only a matter of time before XRP price in spot markets begins to edge closer to the $1 mark. 

Meanwhile, ahead of 2024, prominent analysts and market watchers have also identified critical long-term narratives that could drive XRP price toward $1.