Investors have stepped up their wagers in the XRP futures markets as the regulatory pressure on Ripple (XRP) starts to lessen. What will happen to spot prices?
XRP Value Analysis:
Earlier this week, the price of ripple (XRP) hit a 4-month high of $0.57 as optimism in the cryptocurrency markets resurfaced.
On Thursday, the total amount of money transacted on the XRP futures markets exceeded $600 million, indicating significant interest from investors.
What Does XRP’s $600M Open Interest Mean for Its Price?,What Does XRP’s $600M Open Interest Mean for Its Price?
Important technical indicators underline important support and resistance areas to keep an eye on while confirming the bullish position.
Earlier this week, the price of ripple (XRP) hit a 4-month high of $0.57 as optimism in the cryptocurrency markets resurfaced. A thorough examination of the data from the derivatives markets reveals that this week’s resurgence of investor interest has driven the XRP Futures Markets to a 70-day high.
Volume in XRP Derivatives Markets Reachs a 70-Day High of $600M
This week, XRP showed itself as one of the top achievers in the Crypto top 10. With the SEC case against Ripple being dropped, among other bullish news developments, XRP was well-positioned to close out October on a favourable note.
This week’s XRP market volatility has drawn back investors’ attention due to the easing regulatory pressure surrounding Ripple. Since the SEC investigation against Ripple’s senior executives was dropped around October 19, investors have poured $117 million into the XRP futures markets, according to Coinglass, a website that analyses the derivatives market.
XRP Open Interest rose from $483 million to $601 between October 18 and October 27, as shown in the graph below.
Open Interests in the context of futures and options trading is the total number of contracts or positions that investors have opened for a certain asset that are now outstanding. An uptick in open interest is a crucial sign of active trading and more liquidity.
It indicates that new capital is being invested more quickly than existing investors are liquidating their holdings.
Notably, the total value of XRP futures markets has crossed $600 million for the first time since August 16 thanks to the $177 million gain in XRP over the past ten days.
It is not unexpected that in the ten trading days between October 18 and October 27, the spot price of XRP increased by 19%, from $0.48 to $0.57.
According to rumours that surfaced on Friday, the SEC and Ripple Labs are anticipated to move forward with concluding a $700 million settlement. The settlement’s formal result may cause a large amount of price movement in the coming days.
What Does XRP’s $600M Open Interest Mean for Its Price?,What Does XRP’s $600M Open Interest Mean for Its Price?,What Does XRP’s $600M Open Interest Mean for Its Price?, XRP coin Crypto news, XRP coin News