Analysts warn that Ripple’s native XRP (XRP) token could experience a “leverage-driven” pump as asset prices reach levels not seen since 2021.
CryptoQuant analyst Maarten Regterchot wrote in a December 1 .
“Open interest is already up 37%. Beware of volatility. The last similar event resulted in a -17% drop,” Maartuun said.
“Be mindful and manage your risks accordingly.”
Source: Maarten Legterschott
According to data from CoinGlass, open interest for XRP has surged 30% in the past 24 hours, reaching a total of $4 billion across major exchanges and trading platforms.
At the time of publication, XRP was trading at $2.39, up a whopping 68% in the past month, according to TradingView data. It’s up nearly 370% in the past month.
XRP is up nearly 70% in the past week. Source: TradingView
Although XRP began to rebound along with major cryptocurrencies such as Bitcoin (BTC) and Solana (SOL) following Donald Trump’s election on November 6, XRP began to outperform other major tokens.
relevant: XRP price chases $2 after breaking the bull flag and hitting new 2024 highs.
On December 1, XRP surpassed Solana by market capitalization and later surpassed Tether (USDT) to become the third-largest cryptocurrency asset by total value.
XRP’s incredible price-performance comes amid an increase in key partnerships, new product development by Ripple Labs, the possibility of an XRP ETF, and unsubstantiated rumors that Elon Musk will make significant investments in XRP and Ripple.
Asset manager 21Shares applied for an XRP ETF on November 1, 2024, raising investor expectations that the Securities and Exchange Commission (SEC), which will have new leadership in January 2025, will approve the ETF application.
magazine: Cryptocurrency will grow this much in 4 years. ‘No one can stop you’ — Kain Warwick, Infinex