XRP has experienced a significant surge, with its price rising by nearly 20% in the past week, now trading at $2.58. This sharp increase has outpaced the broader cryptocurrency market, which saw a more modest 13% uptick over the same period. Alongside this price jump, XRP’s open interest has surged more than 40%, signaling growing trader activity and speculation.
Futures Activity Reflects Growing Confidence
In just one week, the open interest for XRP futures has skyrocketed from $2.42 billion to $3.42 billion, marking a $1 billion increase, or a 41.6% rise. This surge, detailed in a May 13 post by Glassnode, suggests a growing influx of capital and heightened market speculation, as traders position themselves for a potential major breakout.
Open interest, which represents the total number of outstanding futures contracts, offers insights into market sentiment. When open interest rises alongside price, it typically indicates fresh capital entering the market, rather than short-covering or position unwinding. In XRP’s case, this pattern supports the view that traders are increasingly confident in the asset’s upward trajectory.
Technical Indicators Signal Continued Strength
XRP’s technical outlook remains robust, with the asset trading above all major short- and long-term moving averages, including the 10-day, 50-day, and 200-day averages. The momentum behind the price action continues to build, with key indicators such as the Relative Strength Index (RSI) approaching, but not yet entering, the overbought zone. This suggests there is still room for the current bullish trend to continue.
Additionally, the Moving Average Convergence Divergence (MACD) indicator points to ongoing upward momentum, further reinforcing the likelihood of a sustained price increase.
Institutional Demand Grows Amid ETF Speculation
Institutional interest in XRP is also on the rise. The XXRP ETF, which offers institutional investors exposure to XRP, has seen consistent inflows for five consecutive weeks. Last week, the fund saw $14 million in inflows, up from $10 million the previous week. The ETF now holds over $99 million in assets under management, a notable achievement considering its relatively high annual management fee of 1.89%—almost double that of some popular Bitcoin ETFs.
This growing interest is being fueled by speculation that spot XRP ETFs may soon be approved by the U.S. Securities and Exchange Commission (SEC). Market platforms like Polymarket are now estimating an 80% probability of approval. According to JPMorgan analysts, XRP ETF inflows could reach $8 billion within the first year, potentially surpassing Ethereum ETF inflows since their September 2024 approval.
XRP Poised for Breakout
With a solid technical foundation, rising institutional demand, and a sharp increase in open interest, XRP is poised for a significant breakout. If current trends persist, the digital asset could see further price gains in the near future.
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