XRP Price Jumps 5.6% as Open Interest Hits $3.76B, Signaling Strong Market Momentum

XRP is gaining renewed attention from investors and traders after a notable 5.61% price increase in the past 24 hours, now trading around $2.20. However, the standout metric is the surge in open interest, which has reached a staggering $3.76 billion. This spike signals growing trader confidence and potential for continued market momentum.

Open interest refers to the total number of active derivative contracts that have not been settled. A simultaneous rise in both price and open interest suggests that new capital is flowing into the market—not just a temporary price pump. This typically indicates that traders are positioning for further upside or hedging against possible retracements, highlighting increased participation and liquidity.

According to CoinMarketCap, XRP’s 24-hour trading volume reached $4.27 billion, up slightly by 0.71%. The cryptocurrency opened at approximately $2.05 and steadily climbed higher throughout the day, supported by consistent buying pressure. Though minor pullbacks occurred, buyers quickly stepped in to defend key levels, maintaining bullish momentum.

This dual surge in price and open interest usually points to a developing trend. If bullish sentiment continues, the added liquidity could propel XRP toward further gains. On the flip side, any sharp shift in market sentiment could lead to a rapid correction due to the large number of leveraged positions at risk.

Overall, the XRP derivatives market appears increasingly robust, and the $3.76 billion open interest underscores the growing investor engagement. As traders keep a close eye on the next move, XRP remains one of the most actively watched assets in the crypto market.