XRP Futures Open Interest Surges by Over $1B, Fueling Speculation of Upcoming Price Rally

input: XRP is drawing significant attention in the crypto market mostly because of a massive spike in its futures open interest (OI). Data from Glassnode shows XRP futures open interest surged by more than $1 billion in the past week. This climb took the OI from $2.42 billion to $3.42 billion, a key indicator for the altcoin.

Recently, XRP has been drawing significant attention in the crypto market, mainly because of a massive spike in its futures open interest (OI).

According to data from Glassnode, XRP futures OI surged by more than $1 billion in the past week. This climb took the OI from $2.42 billion to $3.42 billion, a key indicator for the altcoin.

This sharp 41.6% rise in leverage coincides with a price rally from $2.14 to $2.48, suggesting elevated speculative activity and growing directional conviction.

XRP futures OI saw a sharp increase in the past week. (Source: Glassnode)

"This kind of aggressive speculative behavior often signals growing directional conviction among traders," noted Ali Martinez, a crypto analyst known for his technical analysis.

Moreover, this isn’t the first time XRP has seen such a surge. Back in January, a similar spike in Open Interest preceded a price rally that took XRP from $2.30 to $3.30 in under a week.

XRP price action in January 2024. (Source: TradingView)

"We can clearly see that on-chain data indicates no major resistance clusters ahead. If the current bullish momentum manages to hold, we could see even more upward movement from here," added Martinez.

Currently, the key support zone to watch lies at $2.38.

Major resistance levels clear as support zones strengthen

The recent breakout above the $2.26 level was a key technical event. For weeks, analysts at Benzinga have been following the crucial support level at $2.00.

Once the asset surged past $2.26, it signaled a potential restart of its bull run. Now, even after a temporary halt near $2.70, XRP remains stable above $2.50.

This price range has now become a new base of support, with the $2.38 zone acting as a buffer against potential pullbacks.

With no significant resistance zones ahead, according to Martinez’s observations, XRP may continue climbing with little opposition.

These indicators have fueled a wave of price predictions. Analysts at AllInCrypto project a long-term target of $19. Other analysts, known on X as Techinal M, forecast a more conservative high of $5.40.

As of press time, XRP is trading at $2.53, boasting a 3.28% gain in the past 24 hours and a 21.16% increase over the past week. Its daily trading volume currently exceeds $10.6 billion, and its market cap sits at $148.6 billion.