XRP Futures Surge as Bullish Sentiment Grows

XRP futures are showing renewed strength as traders appear increasingly confident in a bullish outlook for the payments-centric cryptocurrency. Recent data indicates that market participants are flocking to futures contracts linked to XRP, reflecting heightened optimism across trading platforms.

As of Monday, the overall open interest in XRP perpetual futures briefly surged to 800 million XRP. This marks the highest level in over five months—specifically, since January 19. This surge was observed across major crypto exchanges including Binance, Bybit, OKX, and Hyperliquid, according to analytics provider Velo.

Although the total fell slightly to 743 million XRP later that day, the number remains significantly higher—about 33% above where it stood on June 22. That date marked XRP’s most recent temporary bottom, when it touched $1.90, underscoring the rebound in market engagement since then.

For context, open interest measures how many futures contracts are currently active in the market. An increase usually signals that more capital is being injected into the asset’s futures, but it doesn’t necessarily convey investor sentiment—whether traders are betting on the asset to rise or fall in value.

However, there are compelling signs that this upswing in open interest is fueled by bullish sentiment. One such indicator is the consistent trend in perpetual contract funding rates. These rates, which govern payments between long and short positions, have remained positive and in some instances, have exceeded an annualized rate of 10%. This pattern suggests that traders are increasingly wagering on upward price movement by holding long positions.

In perpetual markets, which do not have an expiry date, funding rates are collected at regular intervals—typically every eight hours. When these rates are positive, it means traders holding long positions (betting on higher prices) are paying those holding shorts (betting on a price drop). This dynamic often results when bullish demand drives the perpetual futures price higher than the underlying spot rate.

Another bullish signal is visible in the long/short ratio among top traders on Binance’s XRP/USDT market. As of the latest update, this ratio stood at 1.90, according to data from Coinglass. This figure indicates that for every one short position, there are nearly two long positions actively in play—highlighting traders’ preference for upside exposure.

Adding to the positive momentum, last week’s activity in the options market further supports the prevailing optimistic narrative. Specifically, many traders targeted higher-strike call options on Deribit, showcasing confidence in potential price gains. This trend was highlighted in a prior report by CoinDesk, which noted dominance of bullish bets on the $3 level for XRP.

Despite all the forward-looking optimism in derivatives markets, XRP’s spot price has not yet fully reflected this sentiment. Earlier on Monday, XRP briefly hit $2.35—a level last reached in late May—before pulling back to hover around $2.25. This lack of follow-through in spot performance indicates that although derivatives activity is heating up, traders may still be waiting for a catalyst to drive a sustained price rally.

Related: Expert Advice: Sell XRP If You’re Confused

Overall, while XRP futures and options markets exhibit signs of strong bullish positioning, the spot market’s muted response suggests traders remain cautiously optimistic. Nevertheless, sustained positive funding rates and skewed long/short ratios hint that market players expect an eventual upward breakout in XRP’s value.