Author: Tom Mitchelhill, CoinTelegraph; Translated by: Deng Tong, Golden Finance
Analysts warn that as the asset's price soars to its highest level since 2021, Ripple's native XRP token may experience a 'leverage-driven' rally.
In an article for X on December 1, CryptoQuant analyst Maarten Regterschot noted that XRP's open positions (a measure of open derivative positions) surged significantly in the past 24 hours, warning that a sharp increase could lead to rapid sell-offs.
"Open interest has surged by 37%—watch out for volatility. The last similar event led to a 17% decline."
"Stay sharp and manage risk accordingly."
Source: Maarten Regterschot
According to CoinGlass, XRP's open interest skyrocketed by 30% in the past 24 hours, reaching $4 billion on major exchanges and trading platforms.
According to TradingView, at the time of this article's publication, XRP's trading price was $2.39, up 68% in the past month.
XRP rose nearly 70% last week. Source: TradingView
After Donald Trump won the election on November 6, XRP began to rise alongside major crypto assets including Bitcoin and Solana, but XRP's performance has started to outperform other major tokens.
On December 1, XRP's market capitalization surpassed Solana and subsequently Tether, becoming the third largest crypto asset by total value.
XRP's exceptional cost-performance ratio stems from an increasing number of key partnerships, new product developments from Ripple Labs, the possibility of an XRP ETF, and unverified rumors that Elon Musk will make significant investments in XRP and Ripple.
Asset management company 21Shares applied for an XRP ETF on November 1, 2024, which increased investor expectations for the approval of the ETF application by the U.S. Securities and Exchange Commission (SEC), likely to be led by new leadership starting January 2025.
