Open Interest for Ripple (XRP) Crosses $600M —Will it Move Prices?

XRP Price Insights:

• Ripple (XRP) price reached a 4-month peak of $0.57 earlier this week as bullish sentiment returned to the crypto markets. 
• The total value of capital traded on XRP futures markets crossed $600 million on Thursday, showing strong investor interest.
• Key technical indicators confirm the bullish stance while highlighting key resistance and support zones to watch. 

Ripple (XRP) price reached a 4-month peak of $0.57 earlier this week as bullish sentiment returned to the crypto markets. An in-depth analysis of the Derivatives markets data shows renewed investor interest this week has pushed XRP Futures Markets to a 70-day peak. 

XRP Derivatives Markets Volume Hits a 70-day Peak of $600M 

XRP emerged as one of the best performers in the Crypto top 10 rankings this week. A series of bullish news events including the dismissed SEC lawsuit against Ripple had put XRP in a prime position to end October positively. 

The relaxed regulatory pressures around Ripple has reignited investors’ attention to XRP markets this week. According to Coinglass — a derivatives market analytics platform, investor pumped $117 million capital inflows into XRP futures markets since the SEC case against Ripple’s top executives was dismissed around October 19.

As depicted below, XRP Open Interest increased by $483 million to $601 between October 18 and October 27. 

In the context of futures and options trading, Open Interests refers to the total number of outstanding contracts or positions that investors have opened for a specific asset. In increase in Open interest is a key indicator of vibrant market activity and increased liquidity. 

It means that new investors are bringing in fresh capital faster than those who are closing out their positions. 

Notably, the $177 million increase in XRP over the last 10 days has now seen the aggregate value XRP futures markets cross $600 million for the first time since August 16. 

It unsurprising that XRP spot price has jumped 19% from $0.48 to $0.57 during the those eventful 10 trading days between October 18 and October 27.

On Friday, reports emerged that the SEC and Ripple Labs are expected to proceed to finalize a $700 million settlement. The official outcome of the settlement could trigger significant price movement in the days ahead. 

XRP Price Forecast: Is the $0.60 Territory is Within Reach?

The increase in Open Interest puts XRP in a prime position to break above thee critical $0.60 during the next upswing.

Ripple (XRP) price currently trades at $0.55 as the bulls make spirited attempts to sustain the momentum from last week’s rally. 

In the daily time frame, the upper Bollinger Band indicates that XRP will face initial resistance is at $0.56. However, a decisive breakout above that level will likely lead to a larger upswing toward $0.60   

On the downside, the lower Bollinger Band is at $0.54 Notably this also doubles as a key psychological support level. And if XRP price sinks below $0.54 level it could attract buying interest and trigger a quick rebound. 

Although unlikely, ffailure to rebound from that range, could open the doors to further reversal toward $0.50.