Cryptocurrency exchange Binance has seen renewed activity in XRP derivatives, according to crypto analytics firm CryptoQuant contributor BoriVest. This surge in trading suggests potential accumulation as the market absorbs selling pressure amid growing speculative interest. 📈
The cryptocurrency’s value has surged by 21% within a week, surpassing the $150 billion market cap mark, and is currently trading around $2.58 after a 3.08% increase in the past 24 hours.
On-chain data suggests XRP experienced selling pressure before recovering. A drop from Monday’s peak triggered massive liquidations totaling $35 million on Tuesday, with longs accounting for the largest share of these losses ($22.82 million). This hints at a decline in short-term interest.
CryptoQuant has observed renewed trading activity in XRP, and BoriVest notes a resurgence in leveraged trading positions following a prior market correction. He suggests these on-chain dynamics may reflect a shift in sentiment as traders return after the recent market correction.
Open interest in XRP has rebounded sharply from $530 million to over $1 billion in recent days, indicating a recovery in market confidence after a significant drop from its peak of $1.5 billion.
Binance funding rates also indicate a shift towards long positions, with positive values suggesting the dominance of long trades over short positions. However, this trend has been inconsistent. The neutral funding rates suggest an equilibrium between bullish and bearish positions.
BoriVest notes that XRP’s Taker Buy/Sell Ratio currently stands at 0.91, signaling selling pressure dominates the market. Despite the current price action, however, he argues it may signal potential accumulation by larger players.
Increased open interest in XRP futures suggests growing speculative activity and buying pressure is contributing to the recent price rally. Glassnode data shows that XRP’s futures open interest surged by more than $10 billion over the past week.
The ongoing legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC) has been a significant factor in XRP’s price volatility, but with the SEC agreeing to settle last week, it is expected to have less influence on its future.