XRP Surge Fueled by $1B in Open Interest Volume

XRP is once again making headlines as a remarkable surge in futures open interest highlights a wave of bullish anticipation within the crypto market. Over the past week, XRP has seen intensified trading activity and heightened investor confidence, signaling a potential breakout looming on the horizon.

The cryptocurrency has risen to the $2.61 mark, delivering a 22% gain over the last seven days. This performance has outpaced the broader digital asset market, which has seen an average return of around 12% during the same period. Traders are actively entering futures markets, showing a clear appetite for more upside potential.

Sharp Increase in Futures Open Interest

Recent on-chain data reveals that XRP’s futures open interest jumped from $2.42 billion to $3.42 billion in a single week—a massive 41.6% increase. This upward trend suggests that new capital is flooding into XRP-related derivatives. A rising open interest alongside a price uptick typically indicates growing speculative activity backed by strong directional conviction from traders.

With both prices and open interest climbing together, the market sentiment surrounding XRP appears strongly bullish. Such synergy signifies that investors anticipate sustained gains and are leveraging their positions accordingly.

Momentum Indicators Reinforce Bullishness

Technically, XRP is exhibiting strength above its 10-day, 50-day, and 200-day moving averages. These levels collectively support the view that the coin is in an established uptrend, both in the short and long term. Additionally, the Relative Strength Index (RSI) sits at 68—just below the overbought threshold of 70—indicating there’s still room for the asset to climb before entering overheated territory.

Adding to the bullish narrative, the MACD (Moving Average Convergence Divergence) has registered a positive crossover, further reinforcing upward momentum. These indicators combined suggest that XRP’s current gains are more than just a flash in the pan—they’re backed by technical strength.

Institutional Inflows Mount

Institutional interest in XRP is also heating up. A dedicated ETF for the asset—referred to as the XXRP fund—has recorded five straight weeks of positive inflows. Last week alone, it attracted $14 million in capital, a notable rise from the previous week’s $10 million. The total asset value under management now approaches $100 million, demonstrating confidence among professional investors despite a relatively high 1.80% annual fee.

Major Catalysts on the Horizon

Eyes are now on potential regulatory developments. According to prediction markets such as Polymarket, there’s currently a 79% probability that the U.S. SEC will greenlight spot XRP ETFs soon. If this approval materializes, analysts forecast strong capital inflows into these funds—with estimates hovering around $8 billion in the first year of the product’s launch.

Such a move could have far-reaching implications for XRP’s valuation, possibly propelling it even higher if institutional demand matches projections. Notably, this influx would surpass the initial performance of Ethereum ETFs which launched in September 2024, further highlighting XRP as a standout in the altcoin space.

Risk Factors to Consider

Despite the bullish backdrop, risks still linger. A sudden bout of profit-taking or a downturn across the wider cryptocurrency market could erase recent gains. Any delay in ETF approvals or negative regulatory developments could also temper investor enthusiasm and lead to a drop below key moving averages, which would serve as a critical warning signal.

At present, XRP remains in a strong technical position with ongoing investment momentum from both retail traders and institutions. With conditions seemingly aligned for further advances, market watchers are keeping a close eye on technical thresholds and upcoming regulatory outcomes. If favorable catalysts continue to stack up, XRP could very well extend its lead among top-performing digital assets.

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