Author: Tom Mitchelhill, CoinTelegraph; Translated by: Deng Tong, Jinse 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' increase.
In an article to X on December 1, CryptoQuant analyst Maarten Regterschot pointed out that XRP's open positions (a measure of open derivative positions) surged significantly in the past 24 hours, warning that the sharp rise could lead to a rapid sell-off.
"Open interest has risen by 37%—note the volatility. The last similar event led to a 17% decline."
"Stay sharp and manage risks accordingly."
Source: Maarten Regterschot
According to CoinGlass, XRP's open interest surged 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, having risen 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 cryptocurrencies, including Bitcoin and Solana, but XRP's performance has started to outperform other major tokens.
On December 1, XRP's market capitalization exceeded Solana, and subsequently surpassed Tether, becoming the third-largest cryptocurrency by total value.
The ultra-high cost-performance ratio of XRP comes from an increasing number of key partners, new product development by Ripple Labs, the possibility of an XRP ETF, and unconfirmed rumors that Elon Musk will invest heavily in XRP and Ripple.
Asset management company 21Shares applied for an XRP ETF on November 1, 2024, raising investor expectations for the approval of the ETF application by the U.S. Securities and Exchange Commission (SEC), which may be led by new leadership in January 2025.
