As XRP resumes its bull run after multiple days of deep consolidation, it is beginning to see renewed interest from investors in both the spot and derivatives market.
Over the last 24 hours, the Ripple-associated altcoin has seen its open interest surge by over 8%, according to data provided by CoinGlass. With XRP gradually returning to the bullish territory, the surge shows that investors increasingly bet on its futures contracts.
XRP futures activity sees crucial rebound
Following the notable surge in XRP’s open interest volume, the data shows that traders have committed a massive 1.6 billion XRP worth about $4.07 to its futures contracts during the last day.
Notably, the positive futures activity suggests that more traders are willing to hold positions due to the expectation of a higher price surge as XRP makes significant resurgence after reclaiming the crucial $2.5 level.
Open interest represents the volume of futures contracts investors have opened on XRP and are yet to be settled as they anticipate potential upsurges to maximize gains.
The surge in the XRP open interest has coincided with a notable rally in XRP’s trading price as the leading altcoin continues to flash signs of a big rebound.
Over the last 24 hours, data from CoinMarketCap shows that XRP has surged by 4.11%, with its price trading at $2.54 as of writing time.
This rapid surge in XRP’s price is very significant to traders as it is coming after multiple days of deep consolidation that saw its price retest $1 after the Oct. 10 crash.
While the major price rebound has restored hope to the market, the surge in XRP price coinciding with a rise in open interest volume suggests the XRP might be up for a sustainable bull rally.
It is important to note that a surge in the price of an asset due to temporary buying pressure is often considered to only last for a short term as the momentum is limited solely to a rise in price.
However, in this case, a corresponding rise in open interest along with a notable surge in trading price indicates that the market will continue to attract more attention, suggesting a strong rally that could push XRP to retest the crucial $3 mark.
With Ripple relentlessly pushing XRP into the spotlight following a series of major developments and partnerships, the move has continued to restore investors’ confidence while attracting fresh interest in the XRP ecosystem.
