XRP has been under bearish pressure for a while with very little positive price movement. However, recent developments related to the United States Securities and Exchange Commission (SEC) have led to a notable increase in Open Interest for XRP.
Rise in XRP Open Interest and Trading Activity
According to a chart shared by CryptoQuant, there is a significant rise in Open Interest alongside the price. Analysts say this suggests that investors are increasingly opening positions with the anticipation of XRP’s price climbing higher.
The growing interest indicates a boost in trading activity surrounding XRP. The confidence in this projection is drawn from a similar bullish pattern that was observed after a notable period of decline between January 8 and February 5.
Following that price dip, the price of XRP witnessed a remarkable surge from around $0.5 to peak at about $0.725 on March 18. With investors opening up more positions, there is widespread anticipation that history might repeat itself for significant profit-taking.
Caution Amid Market Volatility
Despite this projection, investors have been advised to keep a critical eye on the asset performance and watch out for market volatility in order to minimize risk. Analysts maintain that regardless of the Open Interest and price rise signaling bullish sentiments, it could also lead to sudden market swings, hence the need for caution.
As per CoinMarketCap data, XRP is trading at $0.4929, up by 2.56% in the past 24 hours. Similarly, market volume is down 47.91% to $1,094,989,144. This further supports the analysts’ view on market volatility.
Although XRP price is yet to pick up in performance, Oliver Michel, the CEO of Tokentus Investment AG is optimistic that XRP is on track for a 20-fold surge and could reach a staggering price of $10. If that happens, it will be a more than 2,000% rise in price.
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