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XRP’s open interest (OI) recently exceeded the $1 billion mark, boosting optimism in the crypto community about an end to its prolonged downtrend. This has led to speculation about a significant price rally.
XRP Open Interest Grows with RLUSD Stablecoin Testing
The surge in open interest coincides with Ripple’s positive outlook on the upcoming RLUSD stablecoin, currently in private beta testing on the XRP Ledger and Ethereum. The substantial minting of RLUSD has sparked speculation that Ripple may be nearing the end of the test phase and moving towards broader implementation of a dollar-backed stablecoin.
Previously, Ripple emphasized its commitment to using XRP and RLUSD for international settlements, dismissing rumors of a complete shift to stablecoins and abandoning XRP.
According to Coinglass, XRP’s open interest recently surpassed $1 billion, a level last reached in March and June of last year. On the crypto exchange Bybit, XRP leads with $319.59 million in open interest, followed by Binance with $311 million and Bitget with $199 million.
Open interest refers to the total number of outstanding derivative contracts, such as options and futures. An increase in open interest suggests traders are more confident in predicting XRP’s future price movements.
Hopes for XRP Recovery
As of writing, XRP’s price has risen by 2.2% in the past 24 hours to $0.5356. This increase follows positive economic data from the U.S., pushing Bitcoin prices back above $62,000. The U.S. labor market report showed an addition of 254,000 jobs in September, with the unemployment rate falling to 4.1%.
Despite the recoveries in Bitcoin and XRP, both cryptocurrencies have experienced price drops over the past week. According to CoinGecko, Bitcoin fell by 5.5%, while XRP dropped by 9.1%.
Despite these adjustments, the market sentiment for XRP remains optimistic. Analysts highlight technical indicators, such as the symmetrical triangle breakout, and fundamental factors, like the potential arrival of a spot XRP ETF. All these point to strong momentum for further XRP price increases.
Sentiment: Positive
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