XRP futures open interest reaches $1.2 billion record

XRP price’s journey to $1 this year has been nothing short of spectacular, considering the ongoing Securities and Exchange Commission’s lawsuit against Ripple initiated in December 2020. The regulator alleges that XRP was a $1.3 billion unregistered securities offering and both CEO Brad Garlinghouse and co-founder Christian Larsen are also in the crosshairs.

In aprile 6, Ripple Labs was granted access to the U.S. SEC’s documentsexpressing the agency’s interpretation or viewson the subject of crypto assets.

XRP price in USD at Bitstamp. fonte: TradingView

Such news coincided with the explosive 75% radunarsi 30 ore, causing XRP to cross the $1 mark for the first time since March 2018.

It is worth noting that coincidently, in aprile 5, XRP price posted a 10% gain following the 40% stake acquisition in Tranglo, an Asian fiat money remittance company.

Positive news boosts XRP derivatives market growth

Whatever the rationale behind such an impressive move, investitori’ interest in XRP futures trading skyrocketed as the open interest reached $1.2 miliardi, a new all-time high.

XRP futures aggregate open interest. fonte: Bybt

Il 119% open interest increase in 30 days caused XRP to retake the third position, which had been lost to Polkadot (PUNTO), Litecoin (LTC) e Cardano (C'È) over the past couple of months. A titolo di confronto, Etere (ETH) futures open interest stood at $3.3 billion just three months ago.

Even though futures buyers and sellers are evenly matched at all times, a healthy derivatives market allows larger players to participate. Once an asset gets enough hedging and arbitrage activity, its volume on spot exchanges tends to grow, and the cycle perpetuates.

Top cryptocurrencies 1-month performance and volumes. fonte: Nomics

Come illustrato sopra, XRP spot volume over the past 30 days amounts to $44.3 miliardi, alcuni 31% of Ether’s. Regardless of the price move, as long as the token continues to attract investors’ Attenzione, a healthy derivatives market creates a self-fulfilling growth path.

D'altra parte, price pumps unaccompanied by spot volume growth raise the risk of large sell-offs and shuns arbitrage traders.

Social metrics activity has gone ballistic

Nel frattempo, VORTECS™ data from Cointelegraph Markets Pro began to detect a bullish outlook for XRP on April 5, while the token price seemingly stagnated at $0.72.

I VORTECS™ Punto, esclusiva di Cointelegraph, è un confronto algoritmico delle condizioni di mercato storiche e attuali derivate da una combinazione di punti dati, compreso il sentimento del mercato, volume degli scambi, recenti movimenti di prezzo, e l'attività di Twitter.

VORTECS™ Score vs. XRP (bianca) prezzo. fonte: Cointelegraph Markets Pro

Come si vede nella tabella sopra, i VORTECS™ Score for XRP flipped green on April 5 and continued to flash a positive indicator as the price rallied to a $1.10 high on April 6, risultante in a 53% gain in 36 ore.

While the indicator currently remains neutral, XRP price could further continue its rally if more positive news regarding the SEC lawsuit emerges.

Le opinioni e le opinioni qui espresse sono esclusivamente quelle di autore e non riflettono necessariamente le opinioni di Cointelegraph. Ogni mossa di investimento e trading comporta dei rischi. Dovresti condurre le tue ricerche quando prendi una decisione.

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fonte: Cointelegraph

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