XRP has recorded $4.56 billion in open interest amid the broader cryptocurrency market crash. Even though XRP lost over 12% of its price value in the crash, investors betting on the futures derivatives market of the coin have committed over $4.5 billion to it, according to CoinGlass data.
CME leads in XRP futures commitment despite crash
Notably, the 1.82 billion XRP committed, which is worth $4,560,000,000, does not reflect a bullish setup as it is 45.84% deep in the red zone. That is, the current billion invested in XRP is a bear trap, as the coin is underperforming just like every other crypto asset in the market.
For clarity, open interest refers to the total volume of outstanding derivatives contracts, both futures and options, that have not been settled. Despite the large volume, it suggests that these investors betting on a quick recovery might suffer a loss if the price does not soar.
As of this writing, XRP changed hands at $2.45, which represents a 13.02% decline in the last 24 hours. The coin had been trading below the psychological $3 level before the broader market liquidation crashed its price from a peak of $2.83.
Nonetheless, investors appear unmoved by the crash as trading volume has spiked by 355.35% to $21.49 billion. The market participants are treating the price crash as a “buy the dip” opportunity as they anticipate a possible recovery.
Similarly, some investors have decided to bet on the futures market, with most of them on the CME exchange. These committed 453.93 million XRP worth $1.12 billion to the asset.
Others are Binance, Bitget, Bybit and Gate with $748.19 million, $657.43 million, $632.70 million and $508.63 million, respectively.
Could XRP whales delay price recovery?
Meanwhile, XRP’s technical analysis indicates that XRP might be down but not dead. The trend in the asset’s market outlook suggests that selling pressure is easing, and ecosystem bulls might regain control at any moment. If this happens, the coin could restart its journey toward the critical $3 level.
However, it is worth mentioning that large holders might play a crucial role in the rebound journey of XRP. In the last 30 days, XRP whales dumped about $50 million worth of the asset on average daily. If this trend continues, it could affect the market’s recovery efforts.
