Analysts warn that Ripple's native token XRP (XRP) may be undergoing a 'leveraged pump' phase as the price of this asset skyrockets, reaching levels not seen since 2021.
In a post on December 1 on X, CryptoQuant analyst Maarten Regterschot stated that open interest in XRP — a measure of outstanding derivative positions — has surged tremendously in the past 24 hours. He warned that such strong increases could lead to rapid sell-offs.
"Open interest has increased by 37% — watch for volatility. The last similar event led to a -17% drop," Maartuun said. "Be careful, manage risk appropriately."
Source: Maarten Regterschot
According to data from CoinGlass, open interest in XRP surged by 30% in the past 24 hours, reaching a total of $4 billion across major exchanges and trading platforms.
At the time of publication, XRP is trading at $2.39, an astonishing increase of 68% in the past month, according to data from TradingView. It has risen nearly 370% in the past month.
XRP has risen nearly 70% in the past week. Source: TradingView
XRP started to rise in value along with major crypto assets, including Bitcoin (BTC) and Solana (SOL), following Donald Trump's election victory on November 6. However, XRP has begun to surpass other major tokens.
On December 1, XRP surpassed Solana in market capitalization and has since also overtaken Tether (USDT), making it the third largest crypto asset by total value.
XRP's outstanding price performance comes in the context of an increasing number of key partners, new product developments from Ripple Labs, the potential for an XRP ETF fund, and unconfirmed rumors that Elon Musk may be making a significant investment in XRP and Ripple.
Asset management firm 21Shares filed for the establishment of an XRP ETF on November 1, 2024 — raising investor expectations that the Securities and Exchange Commission (SEC) — likely to have new leadership by January 2025 — will approve the ETF application.
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