Traders are abuzz as XRP futures open interest soared to levels unseen since January, hinting at a bullish wave on the horizon for the payment-centric cryptocurrency. On Monday, cumulative open interest in XRP perpetual futures briefly hit a five-month high of 800 million XRP across major exchanges, as per data from Velo. This surge underscores a renewed appetite for the asset, despite the spot price showing little dramatic movement.
Unpacking the Numbers
The noteworthy leap in open interest—a 33% increase since the interim price trough on June 22—signals an influx of capital into the XRP futures market. Open interest, for the uninitiated, is the tally of active futures contracts at any given moment. While it offers no direct insight into market sentiment, the prevailing positive perpetual funding rates suggest traders are leaning bullish.
Perpetual funding rates, essentially the fee mechanism that keeps futures prices tethered to the spot market, have been consistently positive. At times they’ve even breached an annualized 10%, hinting at a strong demand for long exposure. “The persistent positive funding is a clear indicator,” says crypto analyst Jordan Hayes. “It reflects traders’ confidence in XRP’s upward trajectory.”
The Long and Short of It
Adding another layer to the bullish narrative is the “top trader long/short ratio” on Binance for XRP/USDT, which stands at a hefty 1.90. This ratio implies that for every short position, there are nearly two long positions, suggesting many traders are betting on an XRP price increase. This sentiment is further echoed in the Deribit options market, where traders are snapping up higher strike XRP calls. For more on the factors driving XRP’s recent performance, see our article on Why is XRP Up Today? Trio of Catalysts Sees Token Outperform Wider Crypto Market.
However, it’s not all smooth sailing. Despite these bullish signals in futures and options markets, XRP’s spot price remains relatively muted. On Monday, it peaked at $2.35—levels last witnessed at the end of May—before settling back to around $2.25. The lack of significant volatility in the spot market raises questions about whether the futures-driven optimism will translate into tangible price movements.
A Look Back and Forward
Historically, XRP has experienced its fair share of volatility, often driven by regulatory developments and market speculation. In recent months, the cryptocurrency has been on a rollercoaster, with legal battles and institutional interest playing tug-of-war. The current uptick in futures activity could be a precursor to another bout of volatility, but as always in the crypto world, nothing is set in stone. This trend aligns with broader market offerings, such as Robinhood’s launch of micro Bitcoin, Solana, and XRP futures contracts, which could further influence trading dynamics.
Looking ahead, the crypto community is watching closely. Will the futures market’s enthusiasm spill over into the spot market, or will the current pattern of subdued spot action persist? These are the questions on traders’ minds as they navigate the ebbs and flows of a market known for its unpredictability. The coming weeks could be telling.
While the road ahead for XRP is dotted with uncertainties, one thing is clear: traders are gearing up for potential shifts. Whether this bullish fervor will lead to new highs or falter under market pressures remains to be seen. As always in crypto, expect the unexpected.
Source
This article is based on: XRP Futures Open Interest Zooms to 5-Month High as Traders Seek Bullish Bets
Further Reading
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- Crypto Exchange Mercado Bitcoin to Tokenize $200M in Real-World Assets on XRP Ledger
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
