Analysts warn that Ripple's XRP may be experiencing a price increase "due to leverage" as the price of this asset skyrockets to its highest level since 2021.
In a post on X on December 1, analyst Maarten Regterschot from CryptoQuant pointed out that the open interest (OI) of XRP – a measure of open derivative positions – has surged in the last 24 hours, warning that this sudden increase could lead to a rapid sell-off.
"OI has increased by 37% – pay attention to volatility. The most recent similar event led to a -17% drop," Regterschot shared. "Note to always be vigilant and manage risk appropriately."
XRP OI
According to data from CoinGlass, the OI of XRP has increased by 30% in just the last 24 hours, reaching a total value of 4 billion USD on major exchanges.
At the time of writing, XRP is trading at $2.37, up nearly 70% in the past week, bringing total monthly gains to nearly 370%.
XRP 1-day price chart
The price surge of XRP began strongly alongside major cryptocurrencies like Bitcoin and Solana following Donald Trump's victory in the November 6 election. However, XRP has outperformed other major coins recently.
XRP has surpassed Solana in market capitalization and continues to rise sharply, overthrowing Tether to become the third largest cryptocurrency.
The outstanding price performance of XRP occurs against the backdrop of an increasing number of significant partnerships, new products being developed by Ripple Labs, the potential for an XRP ETF in the future, along with unconfirmed rumors that Elon Musk may significantly invest in XRP and Ripple.
Asset management company 21Shares filed for XRP ETF approval on November 1, 2024, raising investor expectations that the U.S. Securities and Exchange Commission (SEC) – which may have new leadership in January 2025 – will approve this ETF application.
