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Key Takeaways :
XRP open interest has soared over $1 billion, signaling rising trader confidence.
Whale and institutional accumulation point to strong bullish sentiment.
Technical indicators and ETF speculation suggest XRP may be poised for a major breakout.
XRP, the native cryptocurrency of the XRP Ledger, is currently experiencing a significant surge in market activity, marked by a remarkable increase in futures open interest (OI) and a notable price rally. Over the past week, XRP's futures OI has escalated by over $1 billion, rising from $2.42 billion to $3.42 billion, representing a 41.6% increase. This surge in OI is often interpreted as a sign of growing speculative interest and directional conviction among traders.
XRP's price has grown significantly, climbing from $2.14 to approximately $2.61, marking a 22% gain over the past seven days. This price movement outpaces the broader cryptocurrency market, which has seen a 12% increase in the same period. The simultaneous rise in both price and open interest suggests that new capital is entering the market, with traders anticipating further upside.
Technical indicators support this bullish outlook. XRP is trading above its 10-day, 50-day, and 200-day moving averages, indicating strong short-term and long-term trends. The Relative Strength Index (RSI) stands at 68, just below the overbought threshold, suggesting that there is still room for the rally to continue. Additionally, the Moving Average Convergence Divergence (MACD) has crossed higher, pointing to sustained upward momentum.
Also Read: XRP Aiming Higher: $10 Is Just the Tip of the Iceberg.
Institutional interest in XRP is also on the rise. The XXRP ETF, which offers institutional investors exposure to XRP, has recorded inflows for five consecutive weeks, with $14 million added last week alone. The fund's total assets under management now exceed $99 million. This growing institutional demand coincides with speculation that the U.S. Securities and Exchange Commission may soon approve spot XRP ETFs, with platforms like Polymarket indicating an 80% probability of approval. Analysts from JPMorgan project that XRP ETF inflows could reach $8 billion in the first year, surpassing Ethereum ETF inflows since their approval in September 2024.
Whale activity further underscores the bullish sentiment. Data from Santiment reveals that wallets holding between 10 million and 100 million XRP now control 12.22% of the circulating supply, up from 10.76% in mid-March. Meanwhile, wallets with over 1 billion XRP have increased their share from 37.53% to 39.13% in early May. This accumulation suggests that large holders anticipate further price gains.
Also Read: Top 3 Again: XRP Rally Sparks $3 Price Breakout Hopes
Despite the bullish indicators, traders should remain cautious of potential volatility. Futures trading volume has declined from a peak of $19.31 billion to $10.75 billion, which could signal a short-term pause in momentum. Key support levels to monitor include $2.50, the 50-day EMA at $2.26, and the 200-day EMA at $2.02.
XRP's recent surge in open interest, price appreciation, positive technical indicators, and growing institutional and whale interest all point towards a potential breakout. However, traders should be prepared for increased volatility and monitor key support and resistance levels closely.
